Reference no: EM132553188
Question 1: Which of the following is a product cost?
Select one:
a. Supplies used in the Marketing Department.
b. Clerical support salaries in the Human Resource Department.
c. None of the above.
d. Maintenance of manufacturing equipment.
e. Commissions paid to sales personnel.
Question 2: On a common-size income statement, net income should be stated as a percentage of:
Select one:
a. net sales.
b. total assets.
c. None of the answer choices is correct.
d. gross margin.
e. current assets.
Question 3: In which of the following cases is a customer most likely to be dropped?
Select one:
a. When the customer's avoidable fixed costs are more than its contribution margin.
b. When the customer's variable costs are more than its total fixed costs.
c. None of the answer choices is correct.
d. When the customer's contribution margin is more than its avoidable fixed costs.
e. When the customer's total fixed costs are more than its contribution margin.
Question 4: Which of the following costs does not change in total when the activity level increases or decreases within the relevant range?
Select one:
a. variable costs
b. fixed costs
c. None of the answer choices is correct.
d. relevant costs
e. mixed costs
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