7. (TCO B) The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: [select one]

can be used under any cost-flow assumption. does not require the use of predetermined overhead rates. keeps costs in the beginning inventory separate from current period costs. does not consider the degree of completion of units in the beginning work-in-process inventory when computing equivalent units of production.

Question 8. 8. (TCO C) The contribution margin ratio always decreases when the : (select one)

fixed expenses increase. fixed expenses decrease. variable expenses as a percentage of net sales increase. variable expenses as a percentage of net sales decrease.

Question 9. 9. (TCO C) To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following? (select one)

Variable expense per unit Variable expense per unit/selling price per unit Fixed expense per unit (Selling price per unit - variable expense per unit) / selling price per unit

Question 10. 10. (TCO D) In an income statement prepared using the variable costing method, fixed manufacturing overhead would (select one)

not be used. be used in the computation of the contribution margin. be used in the computation of net operating income but not in the computation of the contribution margin. be treated the same as variable manufacturing overhead.