Question: 227. If the variable cost per unit goes down: Contribution margin Break-even point A. increases; decreases B. decreases; increases C. increases; increases D. decreases; decreases

227.

If the variable cost per unit goes down:

Contribution margin Break-even point

A.

increases; decreases

B.

decreases; increases

C.

increases; increases

D.

decreases; decreases

228.

Which of the following statements regarding activity-based costing (ABC) is true?

A.

ABC cannot be used to analyse the profitability of customers.

B.

ABC is an appropriate tool for analysing non-manufacturing costs.

C.

ABC can improve product cost accuracy where overhead costs are a small proportion of total costs

D.

ABC is only used in manufacturing organisations.

229.

Downstream costs for a service entity include:

i. marketing

ii. research and development

iii. design

iv. customer support

A.

ii and iii

B.

i and iii

C.

All of the given answers

D.

i and iv

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

If the variable cost per unit goes up: Contribution margin Break-even point A. increases; decreases B. decreases; increases C. increases; increases D. decreases; decreases

Q:

Multiple Choice Questions 1. If the variable cost per unit goes down, Contribution margin Break-even point a. Increases, increases. b. Increases, decreases. c. Decreases, decreases. d. Decreases,...

Q:

1. If the variable cost per unit goes up, Contribution margin Break-even point a. Increases increases. b. Increases decreases. c. Decreases decreases. d. Decreases increases. e. Decreases remains...

Q:

If the variable cost per unit goes down, Contribution margin Break-even point a. increases increases b. increases decreases c. decreases decreases d. decreases increases e. decreases remains unchanged

Q:

1.1 If variable cost per unit goes up: Marginal income Break-even point A. increases increases B. increases decreases C. decreases decreases D. decreases increase

Q:

Which of the following occurs if a company was able to reduce its variable cost per unit? Multiple Choice Contribution margin increases, break - even point increases Contribution margin increases,...

Q:

Which of the following statements is (are) true regarding operating leverage? (Choose all statements that are correct). a.Operating leverage is the relative mix of fixed and variable costs required...

Q:

If the variable cost per unit goes down, a.Contribution margin increases and Break-even point decreases. b.Fixed cost increases and Break-even point increases. c.Contribution margin decreases and...

Q:

If the variable cost per unit goes down, a.Contribution margin increases and Break-even point increases. b.Contribution margin increases and Break-even point decreases. c.Contribution margin...

Q:

1. When the variable cost per unit decreases, the contribution margin on each unit sold also decreases. A) True B) False 2. Which of the following statements is true? A) Indirect costs must be...

Q:

A portfolio consists of two bonds. The bond value, default probability, and recovery rate are USD $1,000,000,1%, and 60% for one bond, and USD $400,000, 5%, and 30% for the other. The default...

Q:

Why are coaching and mentoring effective leadership techniques?

Q:

When you use the balance sheet approach for estimating uncollected accounts

Q:

Add the following unsigned binary numbers. Write your result in binary and decimal. 0 1 + 1 0 1 1