2. Activity based costing allocates the costs of direct materials and overhead?t

2.
Activity based costing allocates the costs of direct materials and overhead?t/f3.
Activity based costing typically uses fewer cost drivers than traditional
costing?t/f4If
the volume of sales is $4000000 and sales at the break even point amount to
$3200000 the margin of safety is 25%.t/f5.
Under traditional costing a common cost driver was direct labor hours?t/f6. The contribution
margin ratio is:A.the portion of
equity contributed by the stockholdersB.the same as the
variable cost ratioC.the same as profitD.the same as the
profit-volume ratio7. What term is
commonly used to describe the concept whereby the cost of manufactured
products is composed of direct materials cost direct labor cost and
variable factory overhead cost?A.a. Absorption
costingB.b. Differential
costingC.c. Standard
costingD.d. Variable
costing8.Cost-volume-profit
analysis involves the use of the contribution margin concept?A.TrueB.False9.If sales are
$200000 variable costs are 58% of sales and operating income is $30000
what is the contribution margin ratio?A.25.9%B.37.5C.58%D.42%10.What ratio indicates
the percentage of each sales dollar that is available to cover fixed costs
and to provide a profit?A.Margin of safety
ratioB.Contribution
margin ratioC.Costs and expenses
ratioD.Profit ratio11. Sales mix is
generally defined as the relative distribution of sales among the various
products sold.A.TrueB.False12.Variable costs are
costs that vary on a per-unit basis with changes in the activity level.A.FalseB.True13.If sales are
$800000 variable costs are 64% of sales and operating income is $240000
what is the contribution margin ratio?A.64%B.36%C.30%D.53.1%14.If fixed costs are
$200000 and the unit contribution margin is $10 profit is zero when 25000
units are sold.A.FalseB.True15. The job order cost sheet is applicable to process costing?t/f16.Cost-volume-profit
analysis requires the identification of fixed and variable costs?A.FalseB.True17.If the unit selling
price is $20 the volume of sales is $2000000 sales at the break-even
point amount to $1500000 and the maximum possible sales are $2200000
the margin of safety is l0000 units.A.FalseB.True18.
A need for having accurate costs was a cause for the increase in the use of
activity based costing?t/f19.A firm operated at
90% of capacity for the past year during which fixed costs were $320000
variable costs were 60% of sales and sales were $1000000. Operating profit
was:A.$80000B.$680000C.$1320000D.$200000

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