Multiple Choice Question 105

The break-even point is where

total variable costs equal total fixed costs.

total sales equal total fixed costs.

contribution margin equals total fixed costs.

total sales equal total variable costs.

Multiple Choice Question 115

The decision rule on whether to sell or process further

is process further as long as total revenue exceeds present revenues.

is process further if incremental revenue from such processing exceeds incremental fixed costs.

is process further if incremental revenue from such processing exceeds the incremental processing costs.

varies from situation to situation.

Multiple Choice Question 98

Each of the following is a disadvantage of buying rather than making a component of a company's productexceptthat

quality control specifications may not be met.

the outside supplier could increase prices significantly in the future.

profitable product lines may be dropped.

the supplier may not deliver on time.

Multiple Choice Question 165

If an unprofitable segment is eliminated

it is impossible for net income to decrease.

variable expenses of the eliminated segment will be eliminated.

it is impossible for net income to increase.

fixed expenses allocated to the eliminated segment will be eliminated.

Multiple Choice Question 146

In a retain or replace equipment decision, trade-in allowance available on old equipment

is relevant because it will not be realized if the old equipment is retained.

reduces the cost of the old equipment.

increases the cost of the new equipment.

is not relevant to the decision.

Multiple Choice Question 117 The projection of financial position at the end of the budget period is found on the

budgeted income statement.

cash budget.

budgeted balance sheet.

sales budget.