22-1
CHAPTER 22
Cost-Volume-Profit Relationships
ASSIGNMENT CLASSIFICATION TABLE
Study Objectives
Questions
Brief
Exercises
Exercises
A
Problems
B
Problems
*
1. Distinguish between
variable and fixed costs.
1, 2, 3,
6
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
3, 4
1, 2, 3
1A
1B
*
4. List the five components of
cost-volume-profit analysis.
94
*
5. Indicate what contribution
margin is and how it can
be expressed.
10, 11
5
5, 7, 8
1A, 2A,
3A, 5A
1B, 2B,
3B, 5B
*
6. Identify the three
ways to determine
the break-even point.
12, 13, 14
6
5, 6, 7,
8, 9
1A, 2A, 3A,
4A, 5A
1B, 2B, 3B,
4B, 5B
*
7. Give the formulas for
determining sales required
to earn target net income.
16
7
9, 10
2A, 5A
2B, 5B
*
8. Define margin of safety,
and give the formulas
for computing it.
15
8
5, 6
2A, 4A, 5A
2B, 4B, 5B
*
9. Describe the essential features
of a cost-volume-profit income
statement.
17
9
11
2A, 4A
2B, 4B
*10. Explain the difference between
absorption costing and variable
costing.
18, 19
10
12, 13
6A
6B
*
Note:
All
asterisked
Questions, Exercises, and Problems relate to material contained in the appendix
*
to
the chapter.