9. Which output would NOT use a process costing system? A) building B) toothpaste C) glass D) flour

10. Riverside Industries has three product lines: A, B and C. The following information is available: Product A Product B Product C Sales $100,000 $90,000 $44,000 Variable costs 76,000 48,000 35,000 Contribution 24,000 42,000 9,000 margin Avoidable fixed 9,000 18,000 3,000 costs Unavoidable fixed 6,000 9,000 7,700 costs Operating $9,000 $15,000 $(1,700) income(loss) Riverside Industries is thinking about dropping Product C because it is reporting a loss. Assume Riverside Industries drops Product C and does not replace it. What will happen to operating income? A) increase $2,400 B) increase $600 C) decrease $9,000 D) decrease $6,000

11. Research and development is the function of value chain that involves A) the generation of ideas related to new products, services or processes B) the generation of ideas related to new products or services C) the detailed design and engineering of products, services or processes D) the detailed design and engineering of new processes

12. A budget prepared for different levels of activity is called a A) flexible budget B) static budget C) operating budget D) rolling budget