CHAPTER 5
Cost-Volume-Profit
ASSIGNMENT CLASSIFICATION TABLE
Study Objectives
Questions
Brief
Exercises
Exercises
A
Problems
B
Problems
*
1.
Distinguish between vari-
able and fixed costs.
1, 2, 3, 6,
8
1
1, 2, 3
1A
1B
*
2.
Explain the significance of
the relevant range.
4, 5
2
*
3.
Explain the concept of
mixed costs.
6, 7, 8,
1, 3, 4, 5
1, 2, 3
1A
1B
*
4.
List the five components
of cost-volume-profit ana-
lysis.
9
*
5.
Indicate what contribution
margin is and how it can
be expressed.
10, 11, 12
6, 7
4, 5, 6, 9,
11
1A, 2A, 3A,
4A, 5A
1B, 2B, 3B,
4B, 5B
*
6.
Identify the three ways to
determine the break-even
point.
13, 14, 15
8, 9
4, 6, 7, 9,
10
1A, 2A, 3A,
4A, 5A
1B, 2B, 3B,
4B, 5B
*
7.
Give the formulas for de-
termining sales required
to earn target net income.
16
10, 12
7
2A, 4A, 5A
2B, 4B, 5B
*
8.
Define margin of safety,
and give the formulas for
computing it.
17
11
4, 6, 8, 9,
10, 11
2A, 3A, 4A,
5A
2B, 4B, 5B
5-1