Which two are true about ABC costing?

		ABC is a way of allocating overhead
		ABC means Allocating Basic Costs
		ABC means Activity Based Costing
		ABC may cause total overhead to increase or decrease.

Match the following. You may use an answer more than once.

- A. B. C.	If variable costs increased, the contribution margin would
- A. B. C.	If fixed costs increased, the contribution margin would
- A. B. C.	If variable costs went up, break even would
- A. B. C.	If fixed costs go up, break even would

A.	stay the same
B.	increase
C.	decrease

Match the following: You may use an answer more than once.

- A. B. C. D. E. F. G.	Total fixed costs are
- A. B. C. D. E. F. G.	Per UNIT variable costs are
- A. B. C. D. E. F. G.	Sales commissions
- A. B. C. D. E. F. G.	Direct labor
- A. B. C. D. E. F. G.	Revenues = costs
- A. B. C. D. E. F. G.	Revenue -variable cost
- A. B. C. D. E. F. G.	amount sales can decrease before incurring a loss
- A. B. C. D. E. F. G.	cost is part fixed and part variable
- A. B. C. D. E. F. G.	conditions under which a cost is fixed

A.	contribution margin
B.	mixed
C.	constant
D.	variable cost
E.	relavant range
F.	Break even
G.	margin of safety