C$.$ Total fixed costs will decrease;

D$.$ Total fixed costs will decrease; Variable cost per unit will decrease

In the preceding problem, what will happen to our break$-$even point under the new lease?

A$.Q_{BE}$ will increase

B$.Q_{BE}$ will decrease

C$.$ Need more information

Which variance is always zero for fixed costs?

A$.$ Static Budget Variance

B$.$ Flexible Budget Variance

C$.$ Sales Volume Variance

If the Flexible Budget Variance for Revenues is Favorable, then:

A$.$ We sold more units than budgeted

B$.$ Actual price was greater than budgeted

C$.$ We sold less units than budgeted

D$.$ Actual price was less than budgeted

$6.$ If the Direct Materials Flexible Budget Variance is Favorable and the Direct Materials Price Variance is Unfavorable, then the Direct Materials Efficiency Variance will be Favorable.

A$.$ Always True

B$.$ Sometimes True

C$.$ Always False

$7.$ The Direct Labor Price Variance plus the Direct Labor Efficiency Variance should equal:

A$.$ The Direct Labor Flexible Budget Variance

B$.$ The Direct Labor Sales Volume Variance

C$.$ The Direct Labor Static Budget Variance

D$.$ Zero

In the journal entry to close Overhead Actual and Overhead Allocated, if you need a debit to CGS keep debits $=$ credits, then there must have been:

A$.$ Overallocated $OH$

B$.$ Underallocated $OH$

C$.$ Error

We are analyzing a new investment project and have calculated the Net Present Value $($NPV$)$ of the estimated future cash flows. We should accept this project if:

A$.NPV<mn\; id="EditorElement\_866548">0</mn>$

B$.NPV=0$

C$.$ NPV $>0$

D$.$ NPV $>$ Required Rate of Return

$10.$ We currently produce a component for our product, but are considering outsourcing it to a avoidable. Therefore, those at thechnology. If we outsource, some of our fixed costs are

A$.$ Relevant

B$.$ Not relevant

C$.$ Sunk

D$.$ Direct