Week 1: Werkcollege meerkeuze opgaves
1) The cost of factory machinery purchased last year is:
A) an opportunity cost.
B) a differential cost.
C) a direct materials cost.
D) a sunk cost.
Purchasing a machine is a sunk cost this is clear in the theory
2) At a sales volume of 40,000 units, Lonnie Company's total fixed costs are £40,000 and total
variable costs are £60,000.
The relevant range is 30,000 to 50,000 units.
If Lonnie were to sell 50,000 units, the total expected cost per unit would be:
A) £2.20.
B) £2.30.
C) £2.50.
D) £2.00.
Variable cost per unit
(£60,000/40,000 units) £1.50
Variable cost of 50,000 units (a)
(£1.50 × 50,000 units) 75,000
Fixed cost (b) 40,000
Total expected cost (a + b) £115,000
Expected cost per unit (£115,000/50,000 units) £2.30
,3) At a sales volume of 40,000 units, Lonnie Company's total fixed costs are £40,000 and total
variable costs are £60,000.
The relevant range is 30,000 to 50,000 units.
If Lonnie were to sell 42,000 units, the total expected cost would be:
A) £105,000.
B) £100,000.
C) £103,000.
D) £102,000.
Variable cost per unit
(£60,000/40,000 units) £1.50
Variable cost of 42,000 units (a) 63,000
Fixed cost (b) 40,000
Total expected cost (a + b) £103,000
4) When volume or level of activity decreases, variable costs will:
A) increase per unit.
B) increase in total.
C) decrease in total.
D) decrease per unit.
Dit is logisch, als volume daalt dan nemen de variable kosten toe, omdat deze toenemen en afnemen
bij een toename of afname van volume.
5) During April, the cost of goods manufactured was £74,000. The beginning finished goods
inventory was £17,000 and the ending finished goods inventory was £14,000. What was the cost
of goods sold for the month?
A) £74,000
B) £71,000
C) £77,000
D) £105,000
Beginning finished goods inventory £17,000
Add: Cost of goods manufactured 74,000
Less: Ending finished goods inventory 14,000
Cost of goods sold £77,000
, 6) All of the following can be differential costs except:
A) variable costs.
B) sunk costs.
C) opportunity costs.
D) fixed costs.
7) Which of the following would most likely be included as part of manufacturing overhead in the
production of a wooden table?
A) The amount paid to an individual who carves a design on the table
B) The commission paid to the salesperson who sold the table
C) Rent of the factory
D) The cost of the wood used in the table
Rent of factory is de enige manufacturing overhead kost hier.
Week 2: Werkcollege meerkeuzevragen
1) Newham Textiles manufactures and sells T-shirts imprinted with college names and slogans. Last
year, the shirts sold for £7.50 each, and the variable expense was £2.25 per unit.
The company needed to sell 20,000 shirts to break even. The operating profit last year was
£8,400. Newham Textiles' expectations for the coming year include the following:
* The selling price per T-shirt will be £9.00.
* Variable expenses will increase by one third.
* Fixed expenses will increase by 10 per cent.
The number of T-shirts the company must sell to break even in the coming year is:
A) 17,500.
B) 19,250.
C) 20,000.
D) 22,000.
Breakeven units = 20,000
Fixed cost = Breakeven units × Unit contribution margin = 20,000 × £5.25 = £105,000
Next year's sales = £9.00
Next year's variable cost per unit = £2.25 + (£2.25 × 1/3) = £3.00
Next year's unit contribution margin = Sales per unit − Variable cost per unit = £9.00 - £3.00 = £6.00
Next year's fixed cost = Last year's fixed cost + 10% = £105,000 + (£105,000 × 10%) = £115,500
Therefore, the number of T-shirts the company must sell to break even in the coming year is = Fixed
cost ÷ unit contribution margin = £115,500 ÷ £6.00 = 19,250 units.
1) The cost of factory machinery purchased last year is:
A) an opportunity cost.
B) a differential cost.
C) a direct materials cost.
D) a sunk cost.
Purchasing a machine is a sunk cost this is clear in the theory
2) At a sales volume of 40,000 units, Lonnie Company's total fixed costs are £40,000 and total
variable costs are £60,000.
The relevant range is 30,000 to 50,000 units.
If Lonnie were to sell 50,000 units, the total expected cost per unit would be:
A) £2.20.
B) £2.30.
C) £2.50.
D) £2.00.
Variable cost per unit
(£60,000/40,000 units) £1.50
Variable cost of 50,000 units (a)
(£1.50 × 50,000 units) 75,000
Fixed cost (b) 40,000
Total expected cost (a + b) £115,000
Expected cost per unit (£115,000/50,000 units) £2.30
,3) At a sales volume of 40,000 units, Lonnie Company's total fixed costs are £40,000 and total
variable costs are £60,000.
The relevant range is 30,000 to 50,000 units.
If Lonnie were to sell 42,000 units, the total expected cost would be:
A) £105,000.
B) £100,000.
C) £103,000.
D) £102,000.
Variable cost per unit
(£60,000/40,000 units) £1.50
Variable cost of 42,000 units (a) 63,000
Fixed cost (b) 40,000
Total expected cost (a + b) £103,000
4) When volume or level of activity decreases, variable costs will:
A) increase per unit.
B) increase in total.
C) decrease in total.
D) decrease per unit.
Dit is logisch, als volume daalt dan nemen de variable kosten toe, omdat deze toenemen en afnemen
bij een toename of afname van volume.
5) During April, the cost of goods manufactured was £74,000. The beginning finished goods
inventory was £17,000 and the ending finished goods inventory was £14,000. What was the cost
of goods sold for the month?
A) £74,000
B) £71,000
C) £77,000
D) £105,000
Beginning finished goods inventory £17,000
Add: Cost of goods manufactured 74,000
Less: Ending finished goods inventory 14,000
Cost of goods sold £77,000
, 6) All of the following can be differential costs except:
A) variable costs.
B) sunk costs.
C) opportunity costs.
D) fixed costs.
7) Which of the following would most likely be included as part of manufacturing overhead in the
production of a wooden table?
A) The amount paid to an individual who carves a design on the table
B) The commission paid to the salesperson who sold the table
C) Rent of the factory
D) The cost of the wood used in the table
Rent of factory is de enige manufacturing overhead kost hier.
Week 2: Werkcollege meerkeuzevragen
1) Newham Textiles manufactures and sells T-shirts imprinted with college names and slogans. Last
year, the shirts sold for £7.50 each, and the variable expense was £2.25 per unit.
The company needed to sell 20,000 shirts to break even. The operating profit last year was
£8,400. Newham Textiles' expectations for the coming year include the following:
* The selling price per T-shirt will be £9.00.
* Variable expenses will increase by one third.
* Fixed expenses will increase by 10 per cent.
The number of T-shirts the company must sell to break even in the coming year is:
A) 17,500.
B) 19,250.
C) 20,000.
D) 22,000.
Breakeven units = 20,000
Fixed cost = Breakeven units × Unit contribution margin = 20,000 × £5.25 = £105,000
Next year's sales = £9.00
Next year's variable cost per unit = £2.25 + (£2.25 × 1/3) = £3.00
Next year's unit contribution margin = Sales per unit − Variable cost per unit = £9.00 - £3.00 = £6.00
Next year's fixed cost = Last year's fixed cost + 10% = £105,000 + (£105,000 × 10%) = £115,500
Therefore, the number of T-shirts the company must sell to break even in the coming year is = Fixed
cost ÷ unit contribution margin = £115,500 ÷ £6.00 = 19,250 units.
