Question 1

If direct materials cost per unit increases, the break-even point will decrease.

Accepted Answer

A) True 
 B)False

Question 2

Match the following terms with their definitions.
-Vary in proportion to changes in activity levels

Accepted Answer

A)  Relevant range
B)  Break-even point
C)  Contribution margin
D)  Fixed costs
E)  Variable costsF) B) and C)
G) A) and D)

Question 3

Cordell, Inc. has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expected change in operating income next year?

Accepted Answer

If sales increase 9% and the o...

Question 4

Which of the following is not an assumption underlying cost-volume-profit analysis?

Accepted Answer

A)   The break-even point will be passed during the period.
B)   Total sales and total costs can be represented by straight lines.
C)   Costs can be accurately divided into fixed and variable components.
D)   The sales mix is constant.E) None of the above
F) B) and D)

Question 5

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Accepted Answer

A) True 
 B)False

Exam 19: Cost Behavior and Cost-Volume-Profit Analysis

If direct materials cost per unit increases, the break-even point will decrease.

Correct Answer
verified

Match the following terms with their definitions. -Vary in proportion to changes in activity levels

Correct Answer
verified

Cordell, Inc. has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expected change in operating income next year?

Correct Answer
verified
If sales increase 9% and the o...
View Answer

Which of the following is not an assumption underlying cost-volume-profit analysis?

Correct Answer
verified

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Correct Answer
verified

Exam 19: Cost Behavior and Cost-Volume-Profit Analysis

If direct materials cost per unit increases, the break-even point will decrease.

Correct AnswerverifiedShow Answer

Match the following terms with their definitions. -Vary in proportion to changes in activity levels

Correct AnswerverifiedShow Answer

Cordell, Inc. has an operating leverage of 3. Sales are expected to increase by 9% next year. What is the expected change in operating income next year?

Correct AnswerverifiedIf sales increase 9% and the o...View AnswerShow Answer

Which of the following is not an assumption underlying cost-volume-profit analysis?

Correct AnswerverifiedShow Answer

If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If sales increase 9% and the o...
View Answer

Correct Answer
verified

Correct Answer
verified