The split-off point is the juncture in manufacturing where the joint products become individually identifiable.

Select one:

a. TRUE

b. FALSE

Zach Company produces and sells a product that has a variable costs of $7 per unit and fixed costs of $200,000 per year. If 40,000 units are produced and sold in a year, what is the cost per unit?

Select one:

a. $17

b. $10

c. $7

d. $12

The financial budget includes ________.

Select one:

a. the capital budget and the sales budget

b. the cash budget and the purchases budget

c. the capital budget and the budgeted income statement

d. the capital budget, the cash budget and the budgeted balance sheet

Only unit costs computed using the same level of production should be compared.

Select one:

a. FALSE

b. TRUE

Past costs that are unavoidable and unchangeable are known as sunk costs.

Select one:

a. TRUE

b. FALSE

Peter Company's expected sales for April are $27,600. Other information follows:

Budgeted Operating Expenses	Amount
Wages	$2,000
Advertising	1,680
Depreciation	1,440
Rent	2,560
Other expenses	5% of sales

Which operating expense is a noncash expense?

Select one:

a. Advertising

b. Wages

c. Rent

d. Depreciation