管理会计文档(7)

管理会计文档

Palmer Inc. currently produces 110,000 units at a cost of $440,000. Next year Palmer Inc.

expects to produce 115,000 units. Palmer’s relevant range is 100,000 to 120,000 units. If the cost is variable and 115,000 units are produced, the cost _____.

($440,000 / 110, 000) x 115,000 = $460,000

a. will stay the same b. will increase to $460,000 c. will decrease d. will be indeterminate

16. A compensation plan where the sales force is XXXXX is a _____.

A compensation plan where the sales force is paid salary plus commission is a _____.

a. purely variable cost b. discretionary fixed cost c. committed fixed cost d. mixed cost

BUS 340 Mid -term Name: _________________ Chapters 1 to 4

17. A XXX is an example of a(n) _____. A property tax is an example of a(n) _____.

a. mixed cost

b. committed fixed cost c. discretionary cost d. engineered cost

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