Multiple choice questions:

1) When the total variable costs are deducted from total mixed costs, we obtain:

A) Mixed cost per unit.

B) Variable cost per unit.

C) Total high-low costs.

D) Total fixed costs.

2) Which of the following is the right formula for calculating total mixed cost?

A) Total mixed cost = (Variable cost per unit ÷ Number of units) + Total fixed cost

B) Total mixed cost = (Variable cost per unit × Number of units) - Total fixed cost

C) Total mixed cost = (Variable cost per unit × Number of units) + Total fixed cost

D) Total mixed cost = (Variable cost per unit ÷ Number of units) - Total fixed cost

3) The dollar amount that provides for covering fixed costs and then provides for operating income is called:

A) Variable cost.

B) Total cost.

C) Contribution margin.

D) Margin of safety.

4) Contribution margin ratio is the ratio of contribution margin to:

A) Net sales revenue.

B) Cost of goods sold.

C) Total variable costs.

D) Total fixed costs.

5) Which of the following is a period cost?

A) Manufacturing overhead

B) Direct labor cost

C) Direct materials cost

D) Administrative cost

Answer rating: 100% (QA)

1 D Total fixed costs 2 C Total mi... View the full answer