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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