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##### Quiz test 2

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;;Question 1;1.;The difference between total sales in dollars and total variable expenses is called;A. net operating income.;B. net profit.;C. the gross margin.;D. the contribution margin.;A.;B.;C.;D.;Question 2;1.;With regard to the CVP graph, which of the following statements is not correct?;A. The CVP graph assumes that volume is the only factor affecting total cost.;B. The CVP graph assumes that selling prices do not change.;C. The CVP graph assumes that variable costs go down as volume goes up.;D. The CVP graph assumes that fixed expenses are constant in total within the relevant range.;A.;B.;C.;D.;Question 3;1.;Which of the following formulas is used to calculate the contribution margin ratio?;A. (Sales - Fixed expenses) ? Sales;B. (Sales - Cost of goods sold) ? Sales;C. (Sales - Variable expenses) ? Sales;D. (Sales - Total expenses) ? Sales;A.;B.;C.;D.;Question 4;1.;The break-even point in unit sales is found by dividing total fixed expenses by;A. the contribution margin ratio.;B. the variable expenses per unit.;C. the sales price per unit.;D. the contribution margin per unit.;A.;B.;C.;D.;Question 5;1.;Break-even analysis assumes that;A. total costs are constant.;B. the average fixed expense per unit is constant.;C. the average variable expense per unit is constant.;D. variable expenses are nonlinear.;A.;B.;C.;D.;Question 6;1.;The break-even point in unit sales increases when variable expenses;A. increase and the selling price remains unchanged.;B. decrease and the selling price remains unchanged.;C. decrease and the selling price increases.;D. remain unchanged and the selling price increases.;A.;B.;C.;D.;Question 7;1.;The margin of safety percentage is computed as;A. Break-even sales ? Total sales.;B. Total sales - Break-even sales.;C. (Total sales - Break-even sales) ? Break-even sales.;D. (Total sales - Break-even sales) ? Total sales.;A.;B.;C.;D.;Question 8;1.;The degree of operating leverage can be calculated as;A. contribution margin divided by sales.;B. gross margin divided by net operating income.;C. net operating income divided by sales.;D. contribution margin divided by net operating income.;A.;B.;C.;D.;Question 9;1.;Which of the following are considered to be product costs under variable costing?;I. Variable manufacturing overhead.;II. Fixed manufacturing overhead.;III. Selling and administrative expenses.;A. I.;B. I and II.;C. I and III.;D. I, II, and III.;A.

Paper#76860 | Written in 18-Jul-2015

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