Refer to the figure above. Line A is the:
total revenue line.
fixed cost line.
variable cost line.
total cost line.
profit line.
Which of the following would produce the largest increase in the
contribution margin per unit?
A 7% increase in selling price.
A 15% decrease in
selling price.
A 14% increase in
variable cost.
A 17% decrease in
fixed cost.
A 23% increase in the
number of units sold.
A company that desires to lower its break-even point should
strive to:
decrease selling
prices.
reduce variable costs.
increase fixed costs.
sell more units.
achieve more than one
of the other answers listed.
Which of the following does not typically
appear on a contribution income statement?
Net income.
Gross margin.
Contribution margin.
Total variable costs.
Total fixed costs.
The unit contribution margin is calculated as the difference
between:
selling price and
fixed cost per unit.
selling price and variable cost per unit.
selling price and
product cost per unit.
fixed cost per unit
and variable cost per unit.
fixed cost per unit
and product cost per unit.
The underlying difference between absorption costing and
variable costing lies in the treatment of:
direct labor.
variable manufacturing
overhead.
fixed manufacturing overhead.
variable selling and
administrative expenses.
fixed selling and
administrative expenses.
All of the following costs are inventoried under absorption
costing except:
direct materials.
direct labor.
variable manufacturing
overhead.
fixed manufacturing
overhead.
fixed administrative salaries.
Which of the following formulas can often reconcile the
difference between absorption- and variable-costing income?
Change in inventory
units × predetermined variable-overhead rate per unit.
Change in inventory
units ÷ predetermined variable-overhead rate per unit.
Change in inventory units × predetermined fixed-overhead
rate per unit.
Change in inventory
units ÷ predetermined fixed-overhead rate per unit.
(Absorption-costing
income - variable-costing income) × fixed-overhead rate per unit.
Which of the following statements about environmental costs
is false?
Remediation costs include offsite, but not onsite,
remediation costs.
Abatement costs
include costs to reduce or eliminate pollution.
Monitoring costs
include the costs of monitoring the regulatory environment as well as
monitoring the production process to determine if pollution is being generated.
Private environmental
costs are those borne by a company or individual.
Social environmental
costs are those borne by the public at large.
Indiana Company incurred the following costs during the past
year when planned production and actual production each totaled 20,000 units:
Indiana's per-unit inventoriable cost under absorption costing is:
Indiana's per-unit inventoriable cost under absorption costing is:
$9.50.
$25.00.
$28.00.
$33.00.
$40.50.
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