Problem 1: Mr. Bryant invested $50,000 cash in a new corporation. The new corporation will record this transaction with a debit to:
a. paid in capital and credit to retain earnings
b. cash and a credit to retained income
c. retained earnings and a credit to cash
d. cash and a credit to paid in capital
Problem 2: Non operating items of the income statement appear
a. appear only on corporate income statements
b. reflect the effects of financial management decisions
c. are revenues and expenses arising for adjusting entries
d. appear on the income statement immediately after gross profit
Problem 3: If the sales price per unit is $100, the unit variable cost is &75, and the total fixed costs of $150,000 then the break even value in dollar sales rounded to the nearest whole dollar is
a. 600,000
b. 150,000
c. 200,000
d. 1,500
Problem 4: If sales price per unit is $100, the total fixed costs are $75,000, and the break even volume in dollar sales is $250,000, then the variable cost per unit is
a. $75,000
b. $30
c. $100
d. $70
Problem 5: Which method is least reliable for measuring cost function?
a. simple least squares regression
b. multiple least squares regression
c. visual fit
d. high low
Problem 6: The change from traditional based costing to activity based costing may reveal that
a. both high and low volume items are over-costed
b. both high and low volume items are under-costed
c. low volume items are over-costed
d. high volume items are over-costed