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##### ) Which is a value-added activity? (Points : 5)...

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Solution

**Question**

) Which is a value-added activity? (Points : 5) Moving Inspection Processing Waiting The break-even point in units can be calculated using the contribution margin approach in the formula (Points : 5) total costs / unit contribution margin. total costs / fixed costs. fixed costs / selling price per unit. fixed costs / unit contribution margin Lewis Production Company had the following projected information for 2010. Selling price per unit $150 Variable cost per unit $90 Total fixed costs $300,000 Which is the break-even point in units? (Points : 5) 2,000 units 5,000 units 3,333 units 60,000 units Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments. Shoes Cosmetics Crafts Sales $120,000 $100,000 $100,000 Direct advertising costs $9,000 $7,000 $4,000 Newspaper ad space 60% 20% 20% How much of the indirect advertising costs will be allocated to the Cosmetics Department if newspaper ad space is the activity driver? (Points : 5) $8,000 $1,600 $1,400 $6,400 When monthly production volume is constant and sales volume is more than production, net income determined with variable costing procedures will (Points : 5) always be greater than net income determined using absorption costing. always be less than net income determined using absorption costing. be equal to net income determined using absorption costing. be equal to contribution margin per unit times units sold

Paper#6876 | Written in 18-Jul-2015

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