Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is not constant O b. Sales mix of products sold does not remain constant O c. Selling price per unit does not change with volume O d. Costs are linear O e. Costs can be divided into variable and fixed components ch hp

Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is not constant O b. Sales mix of products sold does not remain constant O c. Selling price per unit does not change with volume O d. Costs are linear O e. Costs can be divided into variable and fixed components ch hp

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 5MC: In the application of lower-of-cost-or-market, market is the (a) lowest sales price. (b) highest...

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In the application of lower-of-cost-or-market, market is the (a) lowest sales price. (b) highest sales price. (c) replacement cost. (d) average sales price.
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Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs are linear b. Sales mix of products sold does not change c. Selling price per unit changes with volume d. Costs can be divided into variable and fixed components e. Fixed cost per unit is not constant
Which of the following is NOT true regarding an income statement organized according to thecontribution margin approach? Question 6 options: The contribution margin income statement is organized by cost behavior. Operating income will always be the same as operating income in a traditional income statement regardless of changes in inventory levels. All fixed costs, including fixed MOH, are expensed below the contribution margin line. The contribution margin is equal to sales revenue minus variable expenses.
Choose the letter of the correct answer: 1.) This best accounts for the difference in profit between the absorption and variable costing * a.) Difference in sales revenue b.) Difference in fixed costs incurred c.) Difference in inventory valuation d.) Difference in variable costs incurred 2.) Variable selling expenses are * a.) Product costs under variable costing but period costs under absorptions costing b.) Period costs under variable costing but product cost under absorption costing c.) Product costs under both costing methods d.) period costs under both costing methods 3. Which of the following types of cost do not appear on a variable costing income statement? * a.) Direct labor b.) Direct materials c.) Variable selling expenses d.)Fixed factory overhead per unit per sold 4.) All of the following costs are included as product costs under absorption costing except *…
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1. A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph displays onlya. costs associated with units produced.b. operating income associated with expected sales.c. revenues and costs associated with sales volume.d. revenues expected at targeted sales levels.e. All of these are correct. 2. Fixed expenses that cannot be directly traced to individual segments are calleda. cost structure.b. direct fixed expenses.c. operating leverage.d. common fixed expenses.e. indifference point. 3. If sales remain the same and the margin of safety increases, which of the following is true?a. The break-even point has decreased.b. The common fixed costs have increased.c. The break-even point has remained constant.d. Variable costs have increased. 4. Match the type of income statement to the costs it includes.a. Variable costing income statementb. Absorption costing income statementc. Both types of income statements 1. Direct materials for units sold2.…
Which of the following is not an assumption underlying cost-volume-profit analysis?a. The sales mix is constant.b. The break-even point will be passed during the period.c. Total sales and total costs can be represented by straight lines.d. Costs can be accurately divided into fixed and variable components.
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