Question: if a company decrease its degree of operating leverage it would a increase its fixed cost relative to its variable cost b have higher breakeven

if a company decrease its degree of operating leverage it would

a increase its fixed cost relative to its variable cost

b have higher breakeven point

c be less sensitive to changes in sale volume

d have higher amount of contibution margin relative to operating income

e have more downside risk and upside potential

2. utilities costs in a manufacturing plant are a part of

conversion cost manufacturing cost period cost

a yes yes yes

b yes yes no

c no yess yess

d no no yes

3.

Madtack Company's beginning and ending inventories for the month of November Year 1 are:

november 1 november 20

direct material 33500 310000

work in process 72500 85500

finished goods 42500 39000

production data for november follows

direct labor used 100000

factory overhead used 66000

direct material purchased 82500

what is the prime cost??

4. peanut butter costing (cross subzidation) results from

a allocating indirect costs to multiple products

b assigning traced costs to each product

c assigning costs to differnt products using varied costing system withins the same organization

d assigning broadly averaged cost across multiple products without recognizing amounts of reasources used by which products

5. machine setup cost for a specific product is an example of

a unit level cost

b batch level cost

c product sustaing cost

d facility sustaining cost

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