Quiz+-+Chapters+5+and+6 - _ 1. When the level of activity...

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___________________________________________________________________________ 1. When the level of activity increases within the relevant range, how does each of the following change? A. Choice A B. Choice B C. Choice C D. Choice D 2. Which costs will change with a decrease in activity within the relevant range? A. Total fixed costs and total variable cost. B. Unit fixed costs and total variable cost. C. Unit variable cost and unit fixed cost. D. Unit fixed cost and total fixed cost. 3. An example of a discretionary fixed cost is: A. insurance. B. taxes on real estate. C. management training. D. depreciation of buildings and equipment. 4. Contribution margin is the excess of revenues over: A. cost of goods sold. B. manufacturing cost. C. all direct costs. D. all variable costs.
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5. Tempcon, Inc. sells and installs furnaces for $3,000 per furnace. The following cost formula relates to last year's operations at Tempcon: Y = $125,000 + $1,800X If Tempcon sold and installed 500 furnaces last year, what was its total contribution margin last year? A. $475,000
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This note was uploaded on 06/04/2011 for the course ACCOUNTING 2156 taught by Professor Cheryl during the Spring '09 term at Central Community College.

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Quiz+-+Chapters+5+and+6 - _ 1. When the level of activity...

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