1. The systematic examination of the differences between planned and actual contribution margin is

sales mix analysis

contribution margin analysis

gross profit analysis

volume variance analysis

2. Which of the following is not true when determining the selling price for a product?

As long as the selling price is set above the variable costs, the company will make a profit in short run.

Both variable and absorption pricing plans should be considered, to include several pricing alternatives.

Absorption costing should be used to determine routine pricing which includes both fixed and variable costs.

Variable costing is effective when determining short run decisions, but absorption costing is only used for long-term pricing policies.

3.For a supervisor of a manufacturing department, which of the following costs is controllable?

direct materials

depreciation of factory building

sales salaries

insurance on factory building