Reference no: EM132537228

Question 1: A target income refers to:

A) Income at the break-even point.

B) Income from the most recent period.

C) Income planned for a future period.

D) Income only in a multiproduct environment.

E) Income at the minimum contribution margin.

Question 2: A company's normal operating range, which excludes extremely high and low volumes that are not likely to occur, is called the:

A) Margin of safety.

B) Contribution range.

C) Break-even point.

D) Relevant range.

E) High-low point.

Question 3: Which of the following is not a product cost?

A) Direct labor.

B) Indirect manufacturing costs.

C) Direct materials.

D) Manufacturing overhead.

E) All of the items listed above are product costs.