a)

The difference between total sales and total variable costs is the contribution margin. t/f?

b)

Fixed costs are included in CVP analysis. t/f?

c)

The higher the margin of safety, the more risk there is. t/f?

d) Product costs include direct and indirect costs. t/f?

e)

The CVP model assumes that over the relevant range of activity profit will be made. t/f?

f)

Direct material can be conveniently traced to units produced. t/f?

g)

Indirect costs are always period costs. t/f?

h)

Opportunity cost is the cost saved when choosing one option reduces the costs of the current choice. t/f?

i)

The cost of goods that were finished and transferred out of work in process during the current period is called cost of goods manufactured. t/f?

j)

In a double entry accounting system, an increase in liabilities is shown with an entry on the righthand side. t/f?

j)

One of the primary responsibilities of the chief financial officer is to determine the cost per unit of product. t/f?

k)

Managerial accounting typically is the responsibility of the controller. t/f?

l)

Retained earnings is the cumulative net income minus contributions from shareholders. t/f?

m)

Revenue is recognized based on the earnings process. t/f?

n)

A financing activity always involves cash. t/f?