6.Cost behavior is A.the way in which costs change when the activity level chang
ID: 2487250 • Letter: 6
Question
6.Cost behavior is
A.the way in which costs change when the activity level changes.
B.the difference between sales revenue and fixed costs.
C.the same as absorption costing.
D.the amount of sales necessary to achieve a specific profit.
7.A cost that remains the same, in total, regardless of changes in activity level is a
A.variable cost.
B.fixed cost.
C.mixed cost.
D.step cost
8.The contribution margin ratio is
A.the difference between sales revenue and variable costs.
B.the difference between variable costs and fixed costs.
C.variable costs divided by fixed costs.
9.Total contribution margin is defined as
A.selling price times units sold.
B.cost to produce times units sold.
C.total sales revenues less total variable costs.
D.total variable costs less fixed costs.
10.The break-even point is
A.the point where zero contribution margin is earned.
B.the point where zero profit is earned.
C.the point where selling price just equals variable cost.
D.equal to sales revenue less fixed costs.
Explanation / Answer
Q. 7) A cost that remains the same, in total, regardless of changes in activity level is a
Answer:- B. fixed cost. The option B. (Fixed cost) is the right answer.
Q. 8.) The contribution margin ratio is
Answer:- Option A. The difference between sales revenue and variable costs.
Q 9.) Total contribution margin is defined as
Answer:- Option C. Total sales revenues less total variable costs.
Q 10.) The break-even point is
Answer:- Option B. The point where zero profit is earned.
Q 6). Cost Behaviour is
Answer:- Option A. The way in which costs change when the activity level changes.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.