Reference no: EM132721152

Questions -

Q1- Which of the following is the most significant cost for a service company?

A. labour

B. Manufacturing overhead

C. Indirect costs

D. Supplies

Q2- Farm Supply plans to make 10,000 tractors at its plant. Fixed costs are $1,000,000 and variable costs are $500 per tractor. What is the average cost per tractor?

A. $100

B. $500

C. $600

D. $1,500

Q3- The promotion of products and services is known as

A. customer service.

B. marketing.

C. design.

D. distribution.

Q4- Which of the following statements is TRUE if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

A. Break-even point in units decreases.

B. Contribution margin ratio increases.

C. Break-even point in units increases.

D. Break-even point in units remains the same.

Q5- On a CVP graph, the intersection of the sales revenue line and the variable expense line is considered to be

A. the intersection of the axis.

B. the total cost point.

C. the margin of safety point.

D. the break-even point.