Reference no: EM132659460
Question 1: _____ are costs that remain the same in total dollar amount as the activity base changes.
a.Fixed costs
b.Mixed costs
c.Variable costs
d.Total costs
Question 2: The intersection point of the total sales and total costs lines on a cost-volume-profit graph is the _____.
a.semi-fixed point
b.break-even point
c.variable point
d.operating profit point
Question 3: On a cost-volume-profit graph, the break-even point is the intersection of the:
a.total cost and fixed cost lines.
b.total sales and variable cost lines.
c.total cost and variable cost lines.
d.total cost and total sales lines.
Question 4: The margin of safety is computed by:
a.deducting breakeven sales from current sales.
b.deducting variable costs from current sales.
c.deducting budgeted sales from current sales.
d.deducting target profit from current sales.
Question 5: The _____ indicates a possible decrease in sales that may occur before an operating loss occurs.
a.contribution margin
b.break-even point
c.degree of operating leverage
d.margin of safety
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