PUT YOUR ANSWERS To NOS, TRUE/FALSE THE BEST ANSWER TO EACH OF THE FOLLOWING QUE
ID: 2578948 • Letter: P
Question
PUT YOUR ANSWERS To NOS, TRUE/FALSE THE BEST ANSWER TO EACH OF THE FOLLOWING QUESTIONS. ANSWERS TO NOS. 1-6 ON THE SCAN TRON FORM. 1 Property taxes are an example of a mixed cost. If a unit of contribution margin ratio would be 75%. product has a sale price of $5.00 and variable expenses of $3.75, its 3. The addition of a specified target operating income to co ntribution margin same effect on required sales in units as increasing fixed expenses. MULTIPLE CHOICE a) stay the same b) increase c) decrease d) cannot be determined from the information given 5. Cost of goods sold on a conventional income statement includes: a) variable manufacturing costs only b) fixed manufacturing costs only c) marketing costs only d) fixed and variable manufacturing costs When units produced exceed units sold: a) absorption costing operating income will exceed variable costing operating 6. b) variable costing operating income will exceed absorption costing operating c) absorption costing operating income will equal variable costing operating d) unit variable costs decrease ESSAY income income income Define and contrast a fixed cost, a mixed cost, and a variable cost, and give an example of each. 7. Fixed Cost miked cos+ variable cosExplanation / Answer
1. Property Taxes are an example of Mixed cost. : FALSE
Explanation: Property Taxes are Fixed cost
2. FALSE
Explanation: Contribution margin ratio= (Sales - Variable expenses) ÷ Sales = ($5 - $3.75) ÷ 5 = 0.25 or 25%
3. The statment is True.
4. As production increases with in the relevant range , fixed cost per unit decreases.
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