Opener Quick Check 9-6-22

Question 1

Which of the following is not one of the goals of management?

a. Planning
b. Verifying
c. Controlling
d. Decision making

Answer 1

b. Verifying

Question 2

What effect does an increase in volume have on total cost?
a. total fixed cost increases, total variable cost increases
b. total fixed cost increases, total variable cost is constant
c. total fixed cost is constant, total variable cost increases
d. total fixed cost decreases, total variable cost is constant

Answer 2

c. total fixed cost is constant, total variable cost increases

Question 3

Sales - Variable Expenses = ?
a. Contribution Margin
b. Gross Profit
c. Net Income

Answer 3

a. Contribution Margin

Question 4

If the allocation base increases, what happens to POHR?
a. POHR increases
b. POHR decreases
c. POHR is unaffected

Answer 4

b. POHR decreases

Question 5

When calculating POHR by department rather than plantwide, which of the following is true?

a. Use the total MOH and total DLH
b. Use the MOH of the department and total DLH
c. Use the total MOH and cost driver of the department
d. Use the MOH of the department and cost driver of the department

Answer 5

d. Use the MOH of the department and cost driver of the department