C&P Finals Reviewer

88問 • 1年前

問題一覧

This objective of cost-volume-profit (CVP) analysis is essential in estimating revenue or loss at different activity levels.

Profit planning

This pricing strategy involves assessing various cost and adding a standard percentage above the total cost, which will serve as profit.

Markup pricing

This is the difference between the selling price of a product or service and its marginal cost.

Contribution per unit

This is the difference between the sales value and the marginal cost of particular transactions.

Contribution in total

This assumption of break-even analysis represents the relationship between the contribution and selling price of a product in terms of percentage.

Profit-volume ratio

This pricing strategy involves building a profit margin directly into the price of a product or service.

Cost-based pricing

This objective of cost-volume-profit (CVP) analysis assists in framing pricing policies.

Determination of optimum selling price

This is the overall cost of producing a unit of output, which includes direct materials, direct labor, and overheads.

The total cost of production

This objective of cost-volume-profit (CVP) analysis helps in evaluating the relationship among profits, costs, and volume to predict expected income.

Forecasting profit

This is the amount of money equivalent to a sold product or service.

Sales value

It denotes the number of products or services the market can provide.

Supply

It pertains to the price point that allows supply to reasonably serve the potential customers.

Equilibrium

This objective of cost-volume-profit (CVP) analysis assists in evaluating profit and cost incurred.

Exercise cost control

It is the additional cost incurred for the production of an additional unit of output.

Marginal

This pricing strategy involves setting the price of a product or service at a level, which will yield an expected return on investment.

Target-return pricing

Which statement describes premium pricing?

Setting higher prices compared to competitors' selling prices.

Which statement describes rate-based pricing?

Pricing a service based on an hourly pricing model.

Walmart minimizes the costs associated with marketing and production of their products to keep the prices relatively low. Which pricing strategy is demonstrated?

Economy pricing

Walmart minimizes the costs associated with its marketing and production activities to keep the prices of its products relatively low. Which pricing strategy is demonstrated?

Economy pricing

Which statement describes project-based pricing?

Pricing a product or service based on a flat fee arrangement.

It is the increase in portion related to cost and selling price.

Product cost percentage

These are events, tasks, or units of work with a special purpose.

Activities

This is the accumulated total of all costs used to create a product or service, which has already been sold.

Cost of sales

Which of the following gives the main objective of job costing?

To plan the future course of activities

Which of the following is a feature of job costing?

Each job is unique.

Which of the following is a feature of unit costing?

Single product

The level of cost hierarchy cannot be traced to individual products.

Facility-sustaining costs

The decrease in value of a product's original retail price and its actual selling price.

Sales markdown

This refers to the cost procedure used for determining the cost per unit of functions rendered.

Service costing

This is also known as storage costs, which consist of the interest on capital, defective work, storage loss, obsolescence, and premium, among others.

Carrying cost

This is the method used to determine the cost of products at each operation.

Process costing

These involve items in a batch that are similar in nature.

Identical products

The ABC system feature involves overhead costs, which can be identified easily.

Traceability

Which of the following describes cost classification?

Costs are categorized into variable and fixed

These are activities used as cost drivers in computing overhead prices.

Pool rates

Analyze the following questions: Statement I: In output unit-level costs, the cost of activities decreases in proportion to the volume of production or sales. Statement II: Facility-sustaining costs support the entire activities of an organization.

Statement I is incorrect. Statement II is correct.

Analyze the following questions: Statement I: The overhead cost pool is traced by identifying the activities. Statement II: Using pool rates to compute overhead rates is the first stage in the ABC system.

Statement I is correct. Statement II is incorrect.

Analyze the following questions: Statement I: Support activities include scheduled production. Statement II: Production process activities include assembled products.

Both statements are correct.

Analyze the following statements: Statement I: There will be a decrease in carrying cost because of the decline in set-up costs. Statement II: Set-up cost is incurred irrespective of the size of the batch.

Statement I is incorrect. Statement II is correct.

Analyze the following statements: Statement I: In job costing, work is undertaken to customer's specific requirements on the basis of orders. Statement II: Job costing is supposed to determine the cost of production of every order.

Both statements are correct.

These are the cost of keeping the materials for buffer use or holding.

Storage expenses

These costs are not inventoriable and are immediately charged against revenue.

Period

These costs are part of the inventory and are charged against revenue.

Product

It refers to the ongoing business expenses not including or related to direct labor or direct materials.

Overhead

These are costs resulting from a management decision.

Discretionary

This inventory valuation method involves recalculating each inventory item after every purchase.

Average cost

This product expenditure covers credit back programs of sellers to induce additional sales.

Rebate

This type of cost is based on past experiences, budgeted amounts, and industry averages.

Standard

It refers to the expenditure which results in the acquisition of an asset.

Capital

This inventory valuation method assumes that goods are sold or used in the same chronological order in which they are bought.

FIFO

This classification of overhead comprises indirect expenses incurred concerning the management of an organization.

Administration

It pertains to the cost which remain constant per unit

Variable overhead

This classification of overhead comprises the indirect expenses incurred for making appearance products available to customers.

Distribution

This type of cost can be influenced by a supervisor or manager for a given period.

Controllable

This involves the appropriate reallocation of the total cost to the various materials that share a common costing.

Joint purchase

Which group of items represent variable costs?

Direct materials, direct labor, overtime premium, and materials handling costs

A manufacturing organization is interested in knowing the cost per unit of its product while a service firm desires to determine the cost of its rendered services which aspect of cost assessment is demonstrated?

Nature of business

Which group of items represent monetary benefits?

Basic wages, bonuses, holiday pay, etc.

Which of these represents the distribution of manufacturing overheads based on direct materials?

Apportionment of indirect materials and materials handling changes based on consumed resources.

Which group of items represent fixed costs?

Supervision fee, factory rent, insurance, and taxes

Which group of items represent deferred monetary benefits?

Pension, gratuity, etc.

Which of these represents the overhead considerations based on floor area?

Apportionment of overheads such as rent, tax, lightning, and building maintenance expenses.

Which statement describes "step" costs?

These costs remain unchanged or constant for a given level of output and then increase by a fixed amount at a higher level of output.

This pricing model is also called metered services.

Pay per use

This pricing model combines the words "free" and "premium." In this price strategy, a customer can either get a basic version of a service for free or purchase a premium version of the service.

Freemium

This pricing model is the modern term fora lump-sum price.

Flat rates

This pricing model involves a consumer buying a card or loading up a complimentary card with a certain amount of money and then drawing the balance down with each purchase.

Prepaid systems

This pricing model is also called "name your price."

Customer-driven pricing

This pricing model lets the buyer determine the price of a product or service, but the seller is obligated to accept whatever price the buyer is willing to pay.

Pay what you want

It means a collapse in demand.

Crisis

It exists when a company's production capacity and employees are underutilized, resulting in job cuts or wage cuts.

Capacity utilization

It exists when unsold goods pile up in warehouses, factory lots, or resellers.

Inventory stack

It exists when customers try to take advantage of the new balance of power or when competitors start undercutting each other.

Price pressure

It exists when the sales force gets pushed harder and harder to sell more units while customer buying resistance grows.

Selling pressure

Star Belly are sold at a price of P1,499 per piece with a variable cost of P550. The fixed expense of the business is P150,000 per year. Compute for the profit- volume (P/V) ratio.

63%

RMB Corporation desires to determine the gross margin associated with their production using marginal and absorption costing. The operating statistics of the company were as follows: Total units produced – 17,000 units Direct Materials – P15 Total units sold – 9,000 units Direct Wages – P15 Selling price per unit – P200 Variable Overhead – P15 Total Fixed overheads – P70,000 Fixed Overhead – P17 Determine the opening and closing stock using marginal costing.

Opening stock: P765,000; Closing stock: P360,000

This consideration assembles a pricing group bases on business segment, customer type, region, etc.

Organization structure

This pricing model eliminates the seller's risk of non-payment and the buyer's risk of exceeding his budget.

Prepaid system

Which of the following is an example of high-price company?

Gillette, apple, porsche

Which of the following represents the overhead considerations based on floor area?

Rent, taxes, electricity, water and other utilities

In this pricing model, the seller is entirely at the buyer's mercy.

Pay what you want

Which of the following describe a premium-price company?

These companies deliver products and services that convey and confer a very high prestige to consumers.

Which of the following describe a high-price company?

All successful high-price companies offer products or services with more significant importance to the customer.

Mangga Bags employs two (2) production processes relevant to their bag making, which are cutting and sewing. In June 201B, the company produces 20,000 pieces of tote bags. The management of the company wants to determine the product cost per bag for each stage of their manufacturing process. Compute for the total cost of sewing process. Operating Expense Amount Materials purchased P200,000 Maintenance of materials 40,000 Sewing supplies 67,000 Labor expense in sewing 55,000 Normal spoilage (rejects) 8,000

P10.16

Mangga Bags employs two (2) production processes relevant to their bag making, which are cutting and sewing. In June 201B, the company produces 20,000 pieces of tote bags. The management of the company wants to determine the product cost per bag for each stage of their manufacturing process. What is the net volume of production given the following data? Operating Expense Amount Materials purchased P200,000 Maintenance of materials 40,000 Sewing supplies 67,000 Labor expense in sewing 55,000 Normal spoilage (rejects) 8,000

P12,000

It states that successful high-priced companies are hesitant to offer promotions.

Special offers

Which of the following describe a low-price company?

Since the beginning of their operations, all successful low- price companies have focused on low prices and high volumes.

Which of the following is the pricing model used by Netflix?

Flat rates

RLW Finals Reviewer

Elthea Macasinag · 29問 · 1年前

RLW Finals Reviewer

29問 • 1年前

Elthea Macasinag

問題一覧

This objective of cost-volume-profit (CVP) analysis is essential in estimating revenue or loss at different activity levels.

Profit planning

This pricing strategy involves assessing various cost and adding a standard percentage above the total cost, which will serve as profit.

Markup pricing

This is the difference between the selling price of a product or service and its marginal cost.

Contribution per unit

This is the difference between the sales value and the marginal cost of particular transactions.

Contribution in total

This assumption of break-even analysis represents the relationship between the contribution and selling price of a product in terms of percentage.

Profit-volume ratio

This pricing strategy involves building a profit margin directly into the price of a product or service.

Cost-based pricing

This objective of cost-volume-profit (CVP) analysis assists in framing pricing policies.

Determination of optimum selling price

This is the overall cost of producing a unit of output, which includes direct materials, direct labor, and overheads.

The total cost of production

This objective of cost-volume-profit (CVP) analysis helps in evaluating the relationship among profits, costs, and volume to predict expected income.

Forecasting profit

This is the amount of money equivalent to a sold product or service.

Sales value

It denotes the number of products or services the market can provide.

Supply

It pertains to the price point that allows supply to reasonably serve the potential customers.

Equilibrium

This objective of cost-volume-profit (CVP) analysis assists in evaluating profit and cost incurred.

Exercise cost control

It is the additional cost incurred for the production of an additional unit of output.

Marginal

This pricing strategy involves setting the price of a product or service at a level, which will yield an expected return on investment.

Target-return pricing

Which statement describes premium pricing?

Setting higher prices compared to competitors' selling prices.

Which statement describes rate-based pricing?

Pricing a service based on an hourly pricing model.

Walmart minimizes the costs associated with marketing and production of their products to keep the prices relatively low. Which pricing strategy is demonstrated?

Economy pricing

Walmart minimizes the costs associated with its marketing and production activities to keep the prices of its products relatively low. Which pricing strategy is demonstrated?

Economy pricing

Which statement describes project-based pricing?

Pricing a product or service based on a flat fee arrangement.

It is the increase in portion related to cost and selling price.

Product cost percentage

These are events, tasks, or units of work with a special purpose.

Activities

This is the accumulated total of all costs used to create a product or service, which has already been sold.

Cost of sales

Which of the following gives the main objective of job costing?

To plan the future course of activities

Which of the following is a feature of job costing?

Each job is unique.

Which of the following is a feature of unit costing?

Single product

The level of cost hierarchy cannot be traced to individual products.

Facility-sustaining costs

The decrease in value of a product's original retail price and its actual selling price.

Sales markdown

This refers to the cost procedure used for determining the cost per unit of functions rendered.

Service costing

This is also known as storage costs, which consist of the interest on capital, defective work, storage loss, obsolescence, and premium, among others.

Carrying cost

This is the method used to determine the cost of products at each operation.

Process costing

These involve items in a batch that are similar in nature.

Identical products

The ABC system feature involves overhead costs, which can be identified easily.

Traceability

Which of the following describes cost classification?

Costs are categorized into variable and fixed

These are activities used as cost drivers in computing overhead prices.

Pool rates

Statement I is incorrect. Statement II is correct.

Statement I is correct. Statement II is incorrect.

Analyze the following questions: Statement I: Support activities include scheduled production. Statement II: Production process activities include assembled products.

Both statements are correct.

Statement I is incorrect. Statement II is correct.

Both statements are correct.

These are the cost of keeping the materials for buffer use or holding.

Storage expenses

These costs are not inventoriable and are immediately charged against revenue.

Period

These costs are part of the inventory and are charged against revenue.

Product

It refers to the ongoing business expenses not including or related to direct labor or direct materials.

Overhead

These are costs resulting from a management decision.

Discretionary

This inventory valuation method involves recalculating each inventory item after every purchase.

Average cost

This product expenditure covers credit back programs of sellers to induce additional sales.

Rebate

This type of cost is based on past experiences, budgeted amounts, and industry averages.

Standard

It refers to the expenditure which results in the acquisition of an asset.

Capital

This inventory valuation method assumes that goods are sold or used in the same chronological order in which they are bought.

FIFO

This classification of overhead comprises indirect expenses incurred concerning the management of an organization.

Administration

It pertains to the cost which remain constant per unit

Variable overhead

This classification of overhead comprises the indirect expenses incurred for making appearance products available to customers.

Distribution

This type of cost can be influenced by a supervisor or manager for a given period.

Controllable

This involves the appropriate reallocation of the total cost to the various materials that share a common costing.

Joint purchase

Which group of items represent variable costs?

Direct materials, direct labor, overtime premium, and materials handling costs

Nature of business

Which group of items represent monetary benefits?

Basic wages, bonuses, holiday pay, etc.

Which of these represents the distribution of manufacturing overheads based on direct materials?

Apportionment of indirect materials and materials handling changes based on consumed resources.

Which group of items represent fixed costs?

Supervision fee, factory rent, insurance, and taxes

Which group of items represent deferred monetary benefits?

Pension, gratuity, etc.

Which of these represents the overhead considerations based on floor area?

Apportionment of overheads such as rent, tax, lightning, and building maintenance expenses.

Which statement describes "step" costs?

These costs remain unchanged or constant for a given level of output and then increase by a fixed amount at a higher level of output.

This pricing model is also called metered services.

Pay per use

This pricing model combines the words "free" and "premium." In this price strategy, a customer can either get a basic version of a service for free or purchase a premium version of the service.

Freemium

This pricing model is the modern term fora lump-sum price.

Flat rates

This pricing model involves a consumer buying a card or loading up a complimentary card with a certain amount of money and then drawing the balance down with each purchase.

Prepaid systems

This pricing model is also called "name your price."

Customer-driven pricing

This pricing model lets the buyer determine the price of a product or service, but the seller is obligated to accept whatever price the buyer is willing to pay.

Pay what you want

It means a collapse in demand.

Crisis

It exists when a company's production capacity and employees are underutilized, resulting in job cuts or wage cuts.

Capacity utilization

It exists when unsold goods pile up in warehouses, factory lots, or resellers.

Inventory stack

It exists when customers try to take advantage of the new balance of power or when competitors start undercutting each other.

Price pressure

It exists when the sales force gets pushed harder and harder to sell more units while customer buying resistance grows.

Selling pressure

Star Belly are sold at a price of P1,499 per piece with a variable cost of P550. The fixed expense of the business is P150,000 per year. Compute for the profit- volume (P/V) ratio.

63%

Opening stock: P765,000; Closing stock: P360,000

This consideration assembles a pricing group bases on business segment, customer type, region, etc.

Organization structure

This pricing model eliminates the seller's risk of non-payment and the buyer's risk of exceeding his budget.

Prepaid system

Which of the following is an example of high-price company?

Gillette, apple, porsche

Which of the following represents the overhead considerations based on floor area?

Rent, taxes, electricity, water and other utilities

In this pricing model, the seller is entirely at the buyer's mercy.

Pay what you want

Which of the following describe a premium-price company?

These companies deliver products and services that convey and confer a very high prestige to consumers.

Which of the following describe a high-price company?

All successful high-price companies offer products or services with more significant importance to the customer.

P10.16

Mangga Bags employs two (2) production processes relevant to their bag making, which are cutting and sewing. In June 201B, the company produces 20,000 pieces of tote bags. The management of the company wants to determine the product cost per bag for each stage of their manufacturing process. What is the net volume of production given the following data? Operating Expense Amount Materials purchased P200,000 Maintenance of materials 40,000 Sewing supplies 67,000 Labor expense in sewing 55,000 Normal spoilage (rejects) 8,000

P12,000

It states that successful high-priced companies are hesitant to offer promotions.

Special offers

Which of the following describe a low-price company?

Since the beginning of their operations, all successful low- price companies have focused on low prices and high volumes.

Which of the following is the pricing model used by Netflix?

Flat rates