Break_even_and_Cost_volume_analysis

Break_even_and_Cost_volume_analysis - Break even and Cost...

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Break even and Cost volume analysis Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which word completes the following sentence? The graph below represents ____ costs. a. Semi-variable c. Variable b. Total d. Fixed ____ 2. Which word completes the following sentence? The graph below represents ____ costs. a. Fixed c. Semi-variable b. Variable d. Marginal ____ 3. Reddy Wendover Limited is obliged under the terms of a contractual arrangement to insure shipments of valuable goods to an overseas customer. The customer orders varying amounts of goods – for example, recent orders have been for 153, 226, 504, and 81 items. The costs of insurance are £300 for 100 items, £600 for any shipment of between 101 and 200 items, £900 for any shipment of 201 to 300 items, and so on. Which one of the following graphs best represents this cost?
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a. c. b. d. ____ 4. Marginal costing is useful for which important management accounting function? a. Control c. Budgeting b. Planning d. Decision-making ____ 5. Which one of the following descriptions of contribution is correct? Contribution = a. Revenue – fixed costs c. Revenue – variable costs b. Revenue – total costs d. Revenue – semi-variable costs ____ 6. Which of the following statements about contribution are correct? A. If contribution is a positive figure it contributes, first, to covering fixed costs, and second, to profit. B.
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Break_even_and_Cost_volume_analysis - Break even and Cost...

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