$15.$ Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity$-$based costing are those where overhead costs are a there is percentage of total product cost and where diversity among the various products that they produce.

A$)$ low, little

B$)$ low, considerable

C$)$ high, little

D$)$ high, considerable

$16.$ Pitkins Company collects $20\%$ of a month's sales in the month of sale, $70\%$ in the month following sale, and $6\%$ in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are:

Cash collections in April are budgeted to be:

A$)$ $$321,000$

B$)$ $$313,000$ C$)$ $$320,000$

D$)$ $$292,000$

$17.$ The usual starting point for a master budget is:

A$)$ the direct materials purchase budget.

B$)$ the budgeted income statement.

C$)$ the sales forecast or sales budget.

D$)$ the production budget.

$18.$ Which of the following budgets are prepared before the cash budget?

Selling and Administrative

Production Budget

Expense Budget

Yes

Yes

Yes

No

C$)$ No

Yes

D$)$ No

No

A$)$

B$)$

$19.$ Contribution margin can be defined as:

A$)$ the amount of sales revenue necessary to cover variable expenses.

B$)$ sales revenue minus fixed expenses.

C$)$ the amount of sales revenue necessary to cover fixed and variable expenses.

D$)$ sales revenue minus variable expenses.

$20.$ Which of the following strategies could be used to reduce the break$-$even point?

Fixed expenses Contribution margin

A$)$ B$)$ Decrease

Increase

Increase

C$)$ Decrease

Decrease

D$)$ Increase

Increase

Decrease

W