nd which of the following statements about the business variance are correct?) - The budgeted selling price per unit does not change - Budgeted fixed costs do not change - Budgeted variable costs per unit do not change - The units coming in do not change

nd which of the following statements about the business variance are correct?) - The budgeted selling price per unit does not change - Budgeted fixed costs do not change - Budgeted variable costs per unit do not change - The units coming in do not change

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11MC: When should a segment be dropped? A. only when the decrease in total contribution margin is less...

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Question

5. How many of the following statements about the activity gap are correct? (and which of the following statements about the business variance are correct?)
- The budgeted selling price per unit does not change
- Budgeted fixed costs do not change
- Budgeted variable costs per unit do not change
- The units coming in do not change
a)4
b)2
c)1
d)3

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Which of the following statements about margin of safety is false? a. Margin of safety measures the difference between budgeted revenues and breakeven revenues. b. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety decreases. c. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. d. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. e. none of the given answers is false.
3A Choose the correct answer. A. Standard Costing Involve the a) Fixation of estimated cost b) Determination of standard cost c) Setting of budgeting cost B. The difference between actual Cost and standard cost is known as: a) Variance b) Profit c) Differential Cost C. Standard Costing helps in : a)Measuring efficiency b)Reducing loss c)Controlling cost D. Standard costing cannot be used: a) Where item are more than one b) Where management is inefficient c) Worker are slow d) Where nonstandard products are manufactured E. Basic Standard is established for a: a) Short period b) Current Period c) Indefinite Period
D1. Account How can variable expenses, indirect labor, and administrative and marketing expenses being higher than they were budgeted for be considered a weakness?
Which of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O b. Margin of safety measures the difference between budgeted revenues and breakeven revenues. none of the given answers is false. O d. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases. If only the fixed costs decrease but the number of units sold and unit selling price and all constant, the margin of safety decreases.
١٤
21. If variable selling and administrative costs increased, how would the gross margin and contribution margin, respectively, be affected? Gross margin a. Not affect Contribution margin Increase b. Not affect Not affect c. Decrease d. Decrease Decrease Not affect Decrease Not affect
5
Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on the break-even point of an increase or decrease in fixed costs b.how many units must be sold to break even c.the identification of price and efficiency variances d.the ability to conduct sensitivity analysis of cost or price changes
HW 8. Please complete all requirements :)
None
True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production increases.
29