1.

Operating profit computed under absorption costing will be:

Select one:

a. higher than operating profit under variable costing when units produced are less than units sold.

b. higher than operating profit under variable costing in all cases.

c. higher than operating profit under variable costing when units produced are greater than units sold.

d. equal to operating

2.

The average unit cost at a monthly volume of 9,000 units is GH 3, and the average unit cost at a monthly volume of 22,500 units is GH 2.10. What are the total monthly costs if 15,000 units are produced?

Select one:

a. GH 36,000.

b. GH 35,000.

c. GH 44,000.

d. GH 36,600.

3.

ABC Company wishes to make a profit of GH150,000. It has fixed costs of GH75,000 with a contribution margin ratio of 75% and a selling price of GH10 per unit. How many units would the Company need to sell in order to achieve the required level of profit?

Select one:

a. 30,000 units.

b. 10,000 units.

c. 15,000 units.

d. 22,500 units

4.

Under variable costing, product costs consist of

Select one:

a. variable production costs.

b. variable production and selling costs.

c. variable and fixed production costs.

d. variable selling costs.