Reference no: EM132607272
Question 1: Which of the following is an example of a cost that varies in total as the number of units produced changes?
A. Salary of a production supervisor
B. Direct materials cost
C. Property taxes on factory buildings
D. Straight-line depreciation on factory equipment
Question 2: Contribution margin is:
A. the excess of sales revenue over variable cost
B. another term for volume in the "cost-volume-profit" analysis
C. profit
D. the same as sales revenue
Question 3: Salim's fixed costs are RM41, 500, the variable cost is RM12 per unit. If Salim sells the product for RM22 per unit, the breakeven point is:
A. 4,150 units
B. 8,300 units
C. 2,075 units
D. 6,225 units
Question 4: The fixed costs of Juara Co. are RM500, 000 and the unit contribution margin is RM40. If the fixed costs are increased by RM80,000, what is the break-even point?
A. 14,500
B. 12,500
C. 8,333
D. 9,667
Question 5: The followings are underlying assumptions of CVP analysis EXCEPT:
A. the changes in the activity are the only factors that affect costs
B. the costs classifications are reasonably accurate
C. the beginning inventory is larger than ending inventory
D. sales mix is constant
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