$1.$ Consider a cost prediction equation in which total manufacturing overhead is estimated as $$1,350,000+28$x$,$ where x$=$ the number of units produced. Batch$-$related product costs are included in the $$28.$

a$.$True

b$.$ False

$2.$ An increase in the tax rate will cause the contribution margin to decrease and the breakeven point to increase

a$.$ true

b$.$ false

$3.$ The study of how costs and profit change in response to changes in the volume of goods and services provided to consumers is known as:

a$.$Sensitivity analysis

b$.$Cost$-$volume$-$profit analysis

c$.$ Contribution margin analysis

d$.$ Differential cost analysis

$4.$ Utica is a manufacturing firm that is considering whether to keep its accounting department or outsource the accounting function to an overseas$-$based accounting firm. If it outsources, it will lay off the existing accounting staff which of the items below would be relevant to the decision? $($select the four that apply$)$

a$.$ CEO$$s salary

b$.$Reduced cost of office supplies

c$.$Risk of higher taxes because the new firm may not be familiar with U$.$S$.$ tax law

d$.$Fees charged by the accounting firm

e$.$Depreciation on the corporate facilities

f$.$Advertising cost

g$.$Existing internal accounting staff$$s salaries

$5.$ Because opportunity costs are associated with alternatives not taken, they should not be included in relevant cost analysis

a$.$ true

b$.$ false

$6.$ EE Manufacturing makes a full line of exercise equipment. Which of the following costs would be considered part of EE$$s manufacturing overhead? $($Select the six that apply$)$

a$.$Depreciation on the factory equipment

b$.$Freight cost paid to get raw materials

c$.$Wages of employees who assemble the product

d$.$Cost of the oil used to cut metal tubing

e$.$Research costs incurred to develop new types of equipment

f$.$Insurance on the factory building

g$.$Salary of the quality control inspector

h$.$Factory supervisors$$ salaries

i$.$Cost of shipping equipment to customers

j$.$Setup cost to change from one piece of equipment to another