Question Completion Status: QUESTION 2 In a process costing system, manufacturin

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Question Completion Status: QUESTION 2 In a process costing system, manufacturing overhead cost is also called conversion cost. True OFalse QUESTION 3 Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications. True OFalse QUESTION 4 If the contribution margin is not sufficient to cover fixed expenses O total profit equals total expenses. O a loss occurs O variable expenses equal contribution margin. QUESTION 5 If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will O not change O change but direction cannot be determined. Click Save and Submit to save and submit. Click Save All Ansvers to save all answers Save Al

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Ans. 2 FALSE conversion cost is the combination of manufacturing overhead and direct labor so only manufacturing cost can't be called as conversion cost. Ans. 3 TRUE Job-order costing would be more likely to be used because process costing is not used to those conditions where many different products or services are produced each period to customer specifications. Ans. 4 Option 3rd     a loss occurs. Contribution - fixed cost = profit/loss when the cotribution is less than fixed cost it will occur a loss. Ans. 5 Option 3rd    not change Break-even units are calculated on the basis of contribution . When selling price and variable cost will increase equally than the contribution will not change as a result the Break even point will not change.

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