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1. is the excess of budgeted or actual dollar sales over the break-even dollar sales. (A) Break-even sale (B) Contribution margin (C) Margin of safety (D) Profitability 2. Manufacturing overhead includes a portion of raw materials know as indirect materials as well as (A) direct labour (B) indirect labour (C) conversion cost (C) prime cost 3. Total earnings are 200,000 and number of equity shares are 20,000. Calculate the EPS. (A) 10% (B) 10 times (C) 10 (D) 100% 7. An example of a liquidity ratio is (A) Fixed asset turnover (B) Current ratio (C) Acid test or quick ratio (D) B and C 4. Which form of business structure is most associated with agency problems? (A) Corporation (B) Sole proprietorship (C) General partnership (D) Limited partnership 5. costs are all the costs necessary to obtain customer orders and to supply the finished product to the customer. (A) Product (B) Period (C) Selling (D) Administrative 6. are incurred in the process of identifying poor-quality products or services before the customer receives the goods or services (A) Prevention (B) Appraisal (C) External failure (D) Internal failure