Question

1.Costs that we expect to incur in the future only if we go with one option instead of the other are

A standard costs

B noncontrollable costs

C sunk costs

D relevant costs

2.What does a traditional income statement have that the contribution margin income statement does NOT have?

A

net income

B

gross margin

C

contribution margin

D

All of the above

3.A company makes two products: tables and chairs. In a multi-product Cost-Volume-Profit Analysis for this company, which of the following would make the break-even units for chairs INCREASE?

A

variable cost per unit for tables increased

B

variable cost per unit for chairs decreased

C

All of the above

D

None of the above

4.A company makes two products: tables and chairs. In a multi-product Cost-Volume-Profit Analysis for this company, which of the following would happen if variable cost per unit for tables DECREASED?

A

The weighted average unit contribution margin would decrease.

B

The total break-even units would increase.

C

The break-even units for chairs would not change.

D

The break-even sales would decrease.

The cost of a manufactured product EXCLUDES

A

the cost of direct labor used to make the product

B

the cost of depreciation on the company jet

C

the cost of depreciation on factory equipment

D

None of the above

5.

When you visit a corn farm, you may see corn seeds, tractors, and farm workers on the farm. The cost of corn seeds would be an example of a

A

Fixed Cost

B

Variable Cost

C

All of the above

D

None of the above

Answer 1