Question A

Describe the differences between process costing and job$-$order costing. Or provide an example of each. Cost$-$volume$-$profit $($CVP$)$ analysis estimates how changes in costs $($both variable and fixed$),$ sales volume, and price affect a company's profit.

Question B

Suppose a firm with a contribution margin ratio of $0\mathrm{.}3$ increased its advertising expenses by $$10,000$ and found that sales increased by $$30,000.$ Was it a good decision to increase advertising expenses? Suppose that the contribution margin ratio is now $0\mathrm{.}4.$ Would it be a good decision to increase advertising expenses?