Question 3

0 / 1 point

The assumptions that underlie basic CVP analysis include all of the following except:

Question options:

all costs can be classified as variable or fixed with reasonable accuracy.

the behavior of both costs and revenues is linear throughout the relevant range.

when more than one product is sold, total sales will be in a constant sales mix.

All of three of the other choices are assumptions.

Question 4

0 / 1 point

Jameson Company desires net income of $1,100,000 when it has $2,500,000 of fixed costs and variable costs of 60% of sales. Required sales equals:

Question options:

$6,250,000.

$6,000,000.

$2,750,000.

$9,000,000.

Question 11

0 / 1 point

Which of the following is true with regard to budgetary planning?

Question options:

The human behavior aspects of budgeting, while they should not be ignored, are generally of little real significance.

The likelihood of a realistic budget is greater when the budget is developed from top management down to lower management.

Generally accepted accounting principles require the budgets be prepared at least annually.

The cash budget is often considered to be the most important output in preparing financial budgets.

Question 14

0 / 1 point

An order at a special price that is accepted will increase income if the revenue received exceeds the:

Question options:

	incremental costs associated with the order.
	fixed and variable costs associated with the order.
	variable manufacturing, selling, and administrative costs associated with the order.
	variable manufacturing costs associated with the order.