5. What does a mixed cost contain? (Points : 2)

a variable element and a fixed element both selling and administrative costs both retailing and manufacturing costs both operating and nonoperating costs

Question 6 Under variable costing, what happens to fixed manufacturing costs? (Points : 2)

They are considered to be a period cost. They are not reported in the income statement. They are charged to the product. They are reported on the balance sheet as a prepayment.

8. A Company produces drives for computers, which it sells for $20 each. Each drive costs $15 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? (Points : 2)

20% 25% 75% 80%

Question 9. Which statement is correct concerning the CVP income statement? (Points : 2)

is distributed internally and externally. classifies costs by functions. discloses contribution margin in the body of the statement. will reflect a different net income than the traditional income statement.

13. A division sold 100,000 calculators during 2014: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 110,000 Billing labor 150,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the contribution margin per unit? (Points : 2)

$2 $7 $13 $17

21. A company sells a product which has a unit sales price of $5, unit variable cost of $2 and total fixed costs of $180,000. What is the number of units the company must sell to break even? (Points : 2)

36,000 units 60,000 units 90,000 units 540,000 units

24. What is the costing approach that charges all manufacturing costs to the product? (Points : 2)

absorption costing contribution margin costing direct costing variable costing

Question 25. In using the high-low method, how is the fixed cost determined? (Points : 2)

by subtracting the total cost at the high level of activity from the total cost at the low activity level. by adding the total variable cost to the total cost at the low activity level. before the total variable cost. by subtracting the total variable cost from the total cost at either the low or high activity level.