Please see attached
1. Which type of information is never available due to uncertainty? A. Estimated B. Perfect C. Financial D. Actual 2. Based on the following information, if unit sales decrease by 12%, how much will fixed costs have to be reduced by to maintain the current operating profit? A. $9,360 B. $3,000 C. $1,800 D. $2,400 3. When is a product cost deducted from revenue? A. When the expenditure is incurred B. When the production process is completed C. When the production process takes place D. When the finished goods are sold 4. Sapphire Company makes a single product that it sells for $180 per unit and has a contribution margin ratio of 28%. The company's fixed costs are $98,000. If Sapphire desires a monthly target operating profit equal to 20% of sales, what will sales have to be (rounded)? A. 5,512 B. 7,245 C. 6,806 D. 5,940 5. The area over which cost relationships are valid as applied in cost accounting is called the A. linear regression. B. scattergraph. C. goal congruence. D. relevant range. 6. Which of the following costs are irrelevant for a special order that will allow an organization to utilize some of its present idle capacity? A. Variable overhead B. Indirect materials C. Unavoidable fixed overhead D. Direct materials 7. The difference between total sales in dollars and total variable costs is called A. net profit. B. operating profit. C. the contribution margin. D. the gross margin. 8. At a break-even point of 400 units, variable costs were $400 and fixed costs were $200. What will the 401st unit sold contribute to operating profits before income taxes? A. $0.50 B. $1.00 C. $2.00 D. $1.50 9. The _______ is equal to the sales price minus the cost of goods sold. A. net profit B. sales margin C. net income D. gross margin 10. Glorious Manufacturing makes replacement parts for vacuum machines. In 2016, the company spent $1,400,000 on prime costs and $900,000 on conversion costs. Overhead is applied at a rate of 140% of direct labor costs. How much did the company allocate for manufacturing overhead during 2016? A. $457,000 B. $575,000 C. $525,000 D. $375,000 11. Which of the following is a nonvalue-added activity? A. Research and development B. Rework of defective items C. Product design D. Customer service 12. The set of activities that transform raw resources into the goods and services that are purchased and consumed by end users is known as the A. value chain. B. benchmark. C. cost driver. D. supply chain. 13. An opportunity cost can be described as A. the cost assigned to the products sold during the period. B. the forgone benefit from the best alternative course of action. C. the excess of operating revenues over operating costs. D. a cost that's charged against revenue in an accounting period. 14. Which of the following best distinguishes an opportunity cost from an outlay cost? A. Outlay costs are speculative in nature, whereas opportunity costs are easily traceable to products. B. Opportunity costs have very little utility in practical applications, whereas outlay costs are always relevant. C. Opportunity costs are recorded, whereas outlay costs aren't. D. Opportunity costs are sacrifices from forgone alternative uses of resources, whereas outlay costs are cash outflows. 15. The Skyways Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. If Skyways increases its selling price by 10%, what will its variable cost ratio do? A. Can't be determined with the information given. B. Decrease C. Not change D. Increase 16. The estimated unit costs for a company to produce and sell a product at a level of 15,000 units per month are as follows: What are the estimated conversion costs per unit? A. $101 B. $110 C. $67 D. $139 17. _______ is a costing method that initially assigns cost to activities and then assigns them to products on the basis of the products' consumption of activities. A. Lean accounting B. Budgeting C. Activity-based costing D. Benchmarking 18. Which of the following is the gross margin? A. The difference between total sales in dollars and total variable costs B. The difference between total sales and cost of goods sold on income statements C. Net sales minus total fixed costs D. The difference between gross profit and net profit 19. What is the difference between variable costs and fixed costs? A. Variable costs per unit change in varying increments, while fixed costs per unit change in equal units. B. Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change. C. Variable costs per unit fluctuate and fixed costs per unit remain constant. D. Variable costs per unit are fixed over the relevant range and fixed costs per unit are variable. 20. The three basic elements of manufacturing cost are direct labor, manufacturing overhead, and A. cost of goods manufactured. B. cost of goods sold. C. direct materials. D. work in process.