Chapter _5 - Quiz Fall 2009 - Answers

Chapter _5 - Quiz Fall 2009 - Answers - Chapter#5 Quiz Cost...

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Chapter #5 – Quiz Name: ________________________________ True or False : Enter a T or a F in the blank to indicate whether the statement is true or false ____ F ___ 1. Variable costs are costs that don’t change, in total, in proportion to changes in the activity level. ____ T ____ 2. Within the relevant range, the higher the activity level, the lower the fixed cost per unit. Fixed costs vary inversely with changes in activity when expressed on a per unit basis. ____ T ____ 3. Contribution margin is the difference between sales and variable expenses. Note: Contribution margin is sales less variable expenses while gross margin is sales less cost of goods sold. ____ F ____ 4. A mixed cost is a cost that contains both manufacturing and non- manufacturing costs. Mixed costs contain both variable and fixed cost elements. ____ T ____ 5. Product costs under the absorption costing method consist of direct materials, direct labor and both variable and fixed manufacturing overhead. (Appendix
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Chapter _5 - Quiz Fall 2009 - Answers - Chapter#5 Quiz Cost...

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