ACC561 ACC/561 WEEK 4 QUIZ

Question 1
A variable cost is a cost that
Question 2
An increase in the level of activity will have the following effects on unit costs for variable and fixed costs
Unit Variable Cost     Unit Fixed Cost 
Question 3
A fixed cost is a cost which
Question 4
Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?
Question 5
Contribution margin
Question 6
The equation which reflects a CVP income statement is
Question 7
A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $150,000. The number of units the company must sell to break even is
Question 8
Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using
Question 9
Under absorption costing and variable costing, how are fixed manufacturing costs treated?
Absorption 	Variable
Question 10
Management may be tempted to overproduce when using

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