3rd_exam_sample_questions

3rd_exam_sample_questions -...

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<Q>A variable cost is a cost that changes in total dollar amount as a result of a change in volume. <C+>True <C>False <Q>Sales commissions are an example of a variable cost. < C+>True <C>False <Q>The president’s salary is a variable cost. <C>True <C+>False <Q>Electricity is a fixed cost. <C>True <C+>False <Q>The factory insurance is a direct cost. <C>True <C+>False <Q>Differential costs are relevant costs. < C+>True <C>False <Q>Donations to charity solicited by telephone are a committed cost. <C>True <C +>False <Q>Sales at the breakeven point means that the company is operating at a profit. <C>True <C+>False <Q>If selling price is $10 and variable cost is $4, then the contribution margin ratio is
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Unformatted text preview: 40%. <C>True <C+>False <Q>If fixed costs total $2,500 and the contribution margin per unit is $10, then the breakeven point in volume is 250 units. <C+>True <C>False <Q>If a company’s sales total $24,000, variable costs are $16,000, and fixed costs total $6,000, a 10% increase in selling price will result in a net income of $4,400. <C+>True <C>False <Q>The starting point in the master budgeting process is the cash budget. <C>True <C+>False <Q>Which one of the following formulas is the proper method for determining the labor efficiency variance? <C>(AR vs SR) x AH <C>(AH vs SH) x AR <C+>(AH vs SH) x SR <C>(AH x AR) + (SH x SR)...
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This note was uploaded on 10/19/2011 for the course ACCT 2000 taught by Professor Holmes during the Fall '08 term at LSU.

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