Multiple choice questions: 1) When the total variable costs are deducted from total mixed costs, we obtain:
Question:
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
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver