Cost a cc - multiple choice questions PDF

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Diagnostic Exam Direction: Encircle the letter which represents your best answer: Under variable costing, ixed manufacturing overhead is: A. expensed immediately when incurred. B. never expensed. C. applied directly to Finished-Goods Inventory. D. applied directly to Work-in-Process Inventory. E. tr...

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Di agnos t i cExam Di r e c t i on:Enci rcl et hel et t erwhi chrepresent syourbestanswer: 1.Underv ar i abl ec o s t i ng ,fixedmanuf ac t ur i ngo ver he adi s : A. e xpe ns edi mmedi at e l ywhe ni nc ur r ed. B. nevere xpens ed. C. appl i e ddi r ec t l yt oFi ni s he dGo odsI nv ent or y . D.appl i eddi r e c t l yt oWor ki nPr o c es sI nvent o r y . E. t r e at e di nt hes amemannerasvar i abl emanuf ac t ur i ngo ver he ad. 2.Al lo ft hef o l l o wi ngar ei nvent o r i edundervar i abl ec os t i nge xc ept : A. di r ec tmat e r i al s . B. di r ec tl abor . C. v ar i abl emanuf ac t ur i ngo ver he ad. D.fixe dmanuf ac t ur i ngo ver he ad. E. i t ems" C"and" D"abo v e. 3.Al lo ft hef o l l o wi ngar ee xpens edundervar i abl ec os t i ngexc ept : A. v ar i abl emanuf ac t ur i ngo ver he ad. B. fixedmanuf ac t ur i ngo v er he ad. C. v ar i abl es e l l i ngandadmi ni s t r at i vec o s t s . D.fixe ds e l l i ngandadmi ni s t r at i vec os t s . E. i t ems" C"and" D"abo v e.

4.Al lo ft hef o l l o wi ngc o s t sar ei nvent or i e dunderabs or pt i onc os t i nge xc ept : A. di r ec tmat e r i al s . B. di r ec tl abor . C. v ar i abl emanuf ac t ur i ngo ver he ad. D.fixe dmanuf ac t ur i ngo ver he ad. E. fixedadmi ni s t r at i ves al ar i es . 5.Al lo ft hef o l l o wi ngar ei nvent o r i edunderabs o r pt i o nc os t i nge xc ept : A. di r ec tl abor . B. r aw mat er i al sus edi npr oduc t i on. C. ut i l i t i esc o s tc ons umedi nmanuf ac t ur i ng . D.s al esc o mmi s s i ons . E. mac hi nel ubr i c antus edi npr oduc t i on.

6.Theunder l yi ngdi ffer enc ebe t we enabs or pt i onc os t i ngandvar i abl ec o s t i ngl i e si nt he t r e at mento f : A. di r ec tl abor . B. v ar i abl emanuf ac t ur i ngo ver he ad. C. fixedmanuf ac t ur i ngo v er he ad. D.var i abl es e l l i ngandadmi ni s t r at i vee xpens e s . E. fixeds e l l i ngandadmi ni s t r at i vee xpens e s . 7.Whi c ho ft hef o l l o wi ngc os t swo ul dbet r eat eddi ffer ent l yunde rabs o r pt i o nc o s t i ng andvar i abl ec o s t i ng? Var i abl e Fi xe d Manuf ac t ur i ng Admi ni s t r at i ve Di r e c t Over he ad Expens es Labo r A. Ye s No Yes B. Ye s Ye s Yes C. No Ye s No D. No No Ye s E. No No No 8.LoneSt arhasc omput edt hef ol l o wi nguni tc os t sf ort heye arj us tended: Di r ec tmat e r i alus ed Di r ec tl abor Var i abl emanuf ac t ur i ngo ve r he ad Fi xe dmanuf ac t ur i ngo ver he ad Var i abl es e l l i ngandadmi ni s t r at i ve c o s t Fi xe ds e l l i ngandadmi ni s t r at i vec os t

P12 18 25 29 10 17

Unde rv ar i abl ec os t i ng,e ac huni to ft hec ompany' si nvent or ywoul dbec ar r i edat : A. P35. B. P55. C. P65. D.P84. E. s omeo t heramount .

9.Pr es c o t tCo r por at i onhasc o mput edt hef o l l o wi nguni tc o s t sf o rt hey earj us tended: Di r ec tmat e r i alus ed Di r ec tl abor Var i abl emanuf ac t ur i ngo ve r he ad Fi xe dmanuf ac t ur i ngo ver he ad Var i abl es e l l i ngandadmi ni s t r at i ve c o s t Fi xe ds e l l i ngandadmi ni s t r at i vec os t

P18 27 30 32 9 17

Underabs or pt i onc os t i ng ,e ac huni to ft hec ompany' si nve nt o r ywo ul dbec ar r i edat : A. P75. B. P107. C. P116. D.P133. E. s omeo t heramount .

10.Sant aFeCor por at i onhasc omput e dt hef ol l o wi nguni tc os t sf o rt heyearj us tende d: Di r ec tmat e r i alus ed Di r ec tl abor Var i abl emanuf ac t ur i ngo ve r he ad Fi xe dmanuf ac t ur i ngo ver he ad Var i abl es e l l i ngandadmi ni s t r at i ve c o s t Fi xe ds e l l i ngandadmi ni s t r at i vec os t

P25 19 35 40 17 32

Whi c ho ft hef o l l o wi ngc ho i c esc or r e c t l ydepi c t st heper uni tc os to fi nv ent or yunde r var i abl ec o s t i ngandabs o r pt i o nc o s t i ng? Var i abl e Abs or pt i on Co s t i ng Co s t i ng A. P79 P119 B. P79 P151 C. P96 P119 D. P96 P151 E. Someo t he rc o mbi nat i o noffigur esnotl i s t e dabove.

11.De l awar ehasc omput edt hef o l l o wi nguni tc os t sf o rt heye arj us tended: Var i abl emanuf ac t ur i ngc os t Fi xe dmanuf ac t ur i ngc os t Var i abl es e l l i ngandadmi ni s t r at i ve c o s t Fi xe ds e l l i ngandadmi ni s t r at i vec os t

P85 20 18 11

Whi c ho ft hef o l l o wi ngc ho i c esc or r e c t l ydepi c t st heper uni tc os to fi nv ent or yunde r var i abl ec o s t i ngandabs o r pt i o nc o s t i ng? A. Var i abl e ,P85;abs o r pt i o n,P105. B. Var i abl e ,P85;abs o r pt i o n,P116. C. Var i abl e ,P103;abs o r pt i o n,P105. D.Var i abl e ,P103;abs o r pt i o n,P116. E. Someo t herc ombi nat i o noffigur esnotl i s t edabove. Us et hef ol l o wi ngt oans werque s t i o ns1213: I ndi anaCo mpanyi nc ur r edt hef o l l o wi ngc o s t sdur i ngt hepas tyearwhenpl anne d pr oduc t i onandac t ualpr oduc t i o ne ac ht o t al ed20, 000uni t s : Di r ec tmat er i al sus ed P280, 000 Di r ec tl abor 120, 000 Var i abl emanuf ac t ur i ngo ver he ad 160, 000 Fi xe dmanuf ac t ur i ngo ver he ad 100, 000 Var i abl es e l l i ngandadmi ni s t r at i v ec os t s 60, 000 Fi xe ds e l l i ngandadmi ni s t r at i vec os t s 90, 000 12.I fI ndi anaus esv ar i abl ec os t i ng ,t het o t ali nvent o r i abl ec os t sf ort heye arwoul dbe: A. P400, 000. B. P460, 000. C. P560, 000. D.P620, 000. E. P660, 000.

13.Theper uni ti nve nt o r i abl ec os tunderabs or pt i onc os t i ngi s : A. P9. 50. B. P25. 00. C. P28. 00. D.P33. 00. E. P40. 50.

14.Co ns i dert hef o l l o wi ngc omment saboutabs or pt i o n-andvar i abl ec os t i ngi nc ome s t at ement s : I . Avar i abl ec os t i ngi nc o mes t at e mentdi s c l os e safir m' sc ont r i but i o nmar gi n. I I . Cos tofgo odss ol donanabs o r pt i onc os t i ngi nc omes t at e menti nc l udesfixed c o s t s . I I I . Theamounto fvar i abl es e l l i ngandadmi ni s t r at i v ec os ti st hes ameo n abs or pt i o n-andvar i abl ec os t i ngi nc omes t at e ment s . Whi c ho ft heaboves t at e ment si s( ar e)t r ue ? A. Ionl y . B. I Ionl y . C. IandI I . D.I IandI I I . E. I ,I I ,andI I I .

15.Rober t s ,whi c hbeganbus i nes satt hes t ar to ft hec ur r entye ar ,hadt hef o l l o wi ng dat a: Pl annedandac t ualpr o duc t i on:40, 000uni t s Sal e s :37, 000uni t satP15peruni t Pr oduc t i o nc os t s : Var i abl e:P4pe runi t Fi xe d:P260, 000 Se l l i ngandadmi ni s t r at i vec os t s : Var i abl e:P1pe runi t Fi xe d:P32, 000 Thegr o s smar gi nt ha tt hec ompanywoul ddi s c l o s eo nanabs or pt i onc o s t i ngi nc o me s t at ementi s : A. P97, 500. B. P147, 000. C. P166, 500. D.P370, 000. E. s omeo t heramount .

16.Mc Af ee ,whi c hbeganbus i ne s satt hes t ar to ft hec ur r e ntyear ,hadt hef o l l o wi ng dat a: Pl annedandac t ualpr o duc t i on:40, 000 uni t s Sal e s :37, 000uni t satP15peruni t Pr oduc t i o nc os t s : Var i abl e:P4pe runi t Fi xe d:P260, 000 Se l l i ngandadmi ni s t r at i vec os t s : Var i abl e:P1pe runi t Fi xe d:P32, 000 Thec o nt r i but i o nmar gi nt hatt hec ompanywoul ddi s c l os eonanabs or pt i o nc os t i ng i nc omes t at e menti s : A. P0. B. P147, 000. C. P166, 500. D.P370, 000. E. s omeo t heramount . 17.Chi c agobeganbus i ne s satt hes t ar to ft hec ur r entye ar .Thec ompanypl annedt o pr o duc e25, 000uni t s ,andac t ualpr oduc t i o nc onf or me dt oe xpe c t at i o ns .Sal e s t o t al ed22, 000uni t satP30e ac h.Co s t si nc ur r edwe r e: Fi xe dmanuf ac t ur i ngo ver he ad Fi xe ds e l l i ngandadmi ni s t r at i vec os t Var i abl emanuf ac t ur i ngc os tpe runi t Var i abl es e l l i ngandadmi ni s t r at i v ec os t peruni t

P150, 000 100, 000 8 2

I ft he r ewer enovar i anc es ,t hec ompany' sabs or pt i onc os t i ngne ti nc omewoul dbe: A. P190, 000. B. P202, 000. C. P208, 000. D.P220, 000. E. s omeo t heramount .

18.No r t o n,whi c hbeganbus i ne s satt hes t ar toft hec ur r entyear ,hadt hef o l l o wi ng dat a: Pl annedandac t ualpr oduc t i on:40, 000 uni t s Sal e s :37, 000uni t sa tP15peruni t Pr oduc t i onc o s t s : Var i abl e:P4peruni t Fi xe d:P260, 000 Se l l i ngandadmi ni s t r at i v ec os t s : Var i abl e:P1peruni t Fi xe d:P32, 000 Thec o nt r i but i o nmar gi nt hatt hec ompanywoul ddi s c l os eonavar i abl ec os t i ng i nc omes t at e menti s : A. P97, 500. B. P147, 000. C. P166, 500. D.P370, 000. E. s omeo t heramount .

19.Madi s onbeganbus i ne s satt hes t ar toft hec ur r enty ear .Thec ompanypl annedt o pr o duc e30, 000uni t s ,andac t ualpr oduc t i o nc onf or me dt oe xpe c t at i o ns .Sal e s t o t al ed28, 000uni t satP32e ac h.Co s t si nc ur r edwe r e: Fi xe dmanuf ac t ur i ngo ver he ad Fi xe ds e l l i ngandadmi ni s t r at i vec os t Var i abl emanuf ac t ur i ngc os tpe runi t Var i abl es e l l i ngandadmi ni s t r at i vec o s tper uni t

P150, 00 0 90, 000 11 2

I ft he r ewer enovar i anc es ,t hec ompany' svar i abl ec os t i ngne ti nc omewoul dbe: A. P270, 000. B. P292, 000. C. P308, 000. D.P532, 000. E. s omeo t heramount .

20.Thef o l l o wi ngdat ar e l at et oLoboCo r por at i onf ort heyearj us tende d: Sal e sr evenue Cos tofgoodss ol d: Var i abl epo r t i on Fi xe dpo r t i o n Var i abl es e l l i ngandadmi ni s t r at i vec o s t Fi xe ds e l l i ngandadmi ni s t r at i vec os t

P750, 000 370, 000 110, 000 50, 000 75, 000

Whi c ho ft hef o l l o wi ngs t at ement si sc or r e c t ? A. Lo bo’ svar i abl ec o s t i ngi nc omes t at eme ntwo ul dr e vealagr os smar gi no f P270, 000. B. Lo bo’ svar i abl ec os t i ngi nc o mes t at ementwoul dr e vealac ont r i but i onmar gi no f P330, 000. C. Lo bo’ sabs or pt i onc os t i ngi nc o mes t at eme ntwoul dr e vealac o nt r i but i onmar gi n o fP330, 000. D.Lobo’ sabs or pt i onc os t i ngi nc omes t at ementwoul dr e ve alagr os smar gi nof P330, 000. E. Lo bo’ sabs or pt i onc os t i ngi nc o mes t at eme ntwoul dr e vealagr os smar gi no f P145, 000.

Us et hef ol l o wi ngt oans werque s t i o ns2122: Fr anzbe ganbus i ne s sa tt hes t ar toft hi sy earandhadt hef o l l o wi ngc os t s :var i abl e manuf ac t ur i ngc o s tperuni t ,P9;fixedmanuf ac t ur i ngc o s t s ,P60, 000;var i abl es e l l i ngand admi ni s t r at i v ec os t speruni t ,P2;andfixe ds e l l i ngandadmi ni s t r at i vec o s t s ,P220, 000.The c o mpanys e l l si t suni t sf o rP45eac h.Addi t i onaldat af o l l o w. Pl annedpr oduc t i oni nuni t s 10, 000 Ac t ualpr oduc t i oni nuni t s 10, 000 Numbero funi t ss ol d 8, 500 The r ewe r enovar i anc es . 21.Thene ti nc ome( l os s )underabs or pt i onc o s t i ngi s : A. P( 7, 500) . B. P9, 000. C. P15, 000. D.P18, 000. E. s omeo t heramount .

22.Thene ti nc ome( l os s )undervar i abl ec os t i ngi s : A. P( 7, 500) . B. P9, 000. C. P15, 000. D.P18, 000. E. s omeo t heramount .

23.I nc o mer epo r t edunderabs or pt i onc os t i ngandvar i abl ec os t i ngi s : A. al wayst hes ame . B. t ypi c al l y ,di ffer ent . C. al wayshi ghe runde rabs or pt i o nc os t i ng. D.al wayshi gherunde rvar i abl ec o s t i ng . E. al wayst hes ameo rhi gherunderabs o r pt i o nc o s t i ng.

24.Go me z ' si nvent o r yi nc r eas e ddur i ngt hey ear .Ont hebas i so ft hi si nf o r mat i on, i nc omer epo r t edunderabs o r pt i onc os t i ng: A. wi l lbet hes ameast hatr e por t edunde rvar i abl ec os t i ng. B. wi l lbehi ghe rt hant hatr epo r t edundervar i abl ec os t i ng. C. wi l lbel o we rt hant hatr epo r t edundervar i abl ec os t i ng . D.wi l ldi fferf r o mt hatr epo r t edundervar i abl ec os t i ng ,t hedi r ec t i onofwhi c h c anno tbede t er mi ne df r om t hei nf or mat i ongi ve n. E. wi l lbel e s st hant hatr epo r t e di nt hepr e vi o uspe r i od.

25.Whi c ho ft hef ol l o wi ngc o ndi t i onswoul dc aus eabs o r pt i o nc os t i ngne ti nc omet obe l o we rt hanv ar i abl ec os t i ngne ti nc ome ? A. Uni t ss o l de xc e ededuni t spr oduc ed. B. Uni t ss o l de qual eduni t spr oduc ed. C. Uni t ss o l dwe r el e s st hanuni t spr oduc ed. D.Sal e spr i c esde c r e as ed. E. Se l l i nge xpe ns esi nc r eas ed. 26.Whi c ho ft hef ol l o wi ngs i t uat i onswoul dc aus evar i abl ec os t i ngne ti nc o met obe l o we rt hanabs or pt i o nc os t i ngneti nc ome ? A. Uni t ss o l de qual ed39, 000anduni t spr oduc e de qual ed42, 000. B. Uni t ss o l danduni t spr oduc edwer ebo t h42, 000. C. Uni t ss o l de qual ed55, 000anduni t spr oduc e de qual ed49, 000. D.Sal e spr i c esde c r e as edbyP7peruni tdur i ngt heac c ount i ngper i od. E. Se l l i nge xpe ns esi nc r eas edby10% dur i ngt heac c ount i ngpe r i od.

27.Co ns i dert hef o l l o wi ngs t at e ment saboutabs or pt i on-andvar i abl ec os t i ngne t i nc ome: I . Ye ar l yi nc omer epo r t edunderabs o r pt i o nc os t i ngwi l ldi fferf r om i nc ome r epor t e dunde rvar i abl ec os t i ngi fpr oduc t i onands al esv ol umesdi ffer . I I . Longr un,t o t ali nc omer e por t edunde rabs o r pt i o nc o s t i ngwi l lof t e nbec l os et o t hatr e po r t edundervar i abl ec os t i ng . I I I . Di ffe r enc esi ni nc omeunderabs o r pt i o nandvar i abl ec o s t i ngc ano f t enbe r ec onc i l edbymul t i pl yi ngt hec hangei ni nv ent or y( i nuni t s )byt hevar i abl e manuf ac t ur i ngo ver he adc o s tperuni t . Whi c ho ft heaboves t at e ment si s( ar e)t r ue ? A. Ionl y . B. I Ionl y . C. I I Ionl y . D.IandI I . E. I IandI I I .

28.Whi c ho ft hef ol l o wi ngf o r mul asc ano f t enr ec onc i l et hedi ffe r enc ebe t ween abs or pt i o n-andvar i abl ec os t i ngne ti nc ome ? A. Changei ni nv ent o r yuni t sxpr ede t er mi nedvar i abl eo ve r headr at eperuni t . B. Changei ni nv ent o r yuni t s÷pr ede t er mi nedvar i abl eove r he adr at eperuni t . C. Changei ni nv ent o r yuni t sxpr ede t er mi nedfixedo ver headr at epe runi t . D.Changei ni nvent o r yuni t s÷pr e de t er mi nedfixedo ver he adr at eperuni t . E. ( Abs o r pt i o nc os t i ngne ti nc ome-var i abl ec os t i ngne ti nc ome)xfixedo ve r he ad r at epe runi t .

29.Mone xr epo r t edP65, 000o fneti nc omef ort heye arbyus i ngabs o r pt i onc o s t i ng.The c o mpanyhadnobegi nni ngi nvent o r y ,pl anne dandac t ualpr oduc t i ono f20, 000uni t s , ands al eso f18, 000uni t s .St andar dv ar i abl emanuf ac t ur i ngc o s t swer eP20peruni t , andt o t albudge t edfixedmanuf ac t ur i ngo ver headwasP100, 000.I ft he r ewe r eno var i anc es ,ne ti nc omeundervar i abl ec os t i ngwo ul dbe: A. P15, 000. B. P55, 000. C. P65, 000. D.P75, 000. E. P115, 000.

30.Cany onr epor t edP106, 000o fne ti nc o mef ort heye arbyus i ngvar i abl ec os t i ng.The c o mpanyhadnobegi nni ngi nvent o r y ,pl anne dandac t ualpr oduc t i ono f50, 000uni t s , ands al eso f47, 000uni t s .St andar dv ar i abl emanuf ac t ur i ngc o s t swer eP15peruni t , andt o t albudge t edfixedmanuf ac t ur i ngo ver headwasP150, 000.I ft he r ewe r eno var i anc es ,ne ti nc omeunderabs o r pt i onc os t i ngwo ul dbe : A. P52, 000. B. P97, 000. C. P106, 000. D.P115, 000. E. P160, 000.

31.Co ns i dert hef o l l o wi ngs t at e ment saboutabs or pt i onc os t i ngandvar i abl ec os t i ng: I .

Var i abl ec os t i ngi sc ons i s t entwi t hc ont r i but i o nr epo r t i ngandc o s t vol umepr ofitanal ys i s . I I . Abs o r pt i onc o s t i ngmus tbeus edf orext er nalfinanc i alr e por t i ng. I I I . Anumberofc ompani e sus ebo t habs or pt i onc o s t i ngandv ar i abl ec o s t i ng. Whi c ho ft heaboves t at e ment si s( ar e)t r ue ? A. Ionl y . B. I Ionl y . C. I I Ionl y . D.IandI I . E. I ,I I ,andI I I .

32.Co ns i dert hef o l l o wi ngs t at e ment saboutabs or pt i onc os t i ngandvar i abl ec os t i ng: I .

Var i abl ec os t i ngi sc ons i s t entwi t hc ont r i but i o nr epo r t i ngandc o s t vol umepr ofitanal ys i s . I I . Var i abl ec os t i ngmus tbeus e df o re xt e r nalfinanc i alr epor t i ng . I I I . Anumberofc ompani e sus ebo t habs or pt i onc o s t i ngandv ar i abl ec o s t i ng. Whi c ho ft heaboves t at e ment si s( ar e)t r ue ? A. Ionl y . B. I Ionl y . C. I I Ionl y . D.IandI I . E. IandI I I .

33.Fo rext er nal r e por t i ngpur pos e s ,ge ner al l yac c ept e dac c ount i ngpr i nc i pl e sr equi r e t hatne ti nc omebebas e do n: A. abs or pt i o nc os t i ng . B. v ar i abl ec os t i ng. C. di r ec tc os t i ng. D.s e mi var i abl ec os t i ng. E. ac t i vi t ybas edc os t i ng.

34.Unde rt hr oughputc os t i ng ,t hec o s tofauni tt ypi c al l yi nc l udes : A. s e l l i ngc os t s . B. fixedmanuf ac t ur i ngo v er he ad. C. t hedi r ec tc os t si nc ur r edwhe ne verauni ti smanuf ac t ur ed. D.admi ni s t r at i v ec os t s . E. al lo ft heabove.

35.Whi c ho ft hef ol l o wi ngme t ho dsde finespr o duc tc o s tast heuni t l e ve lc os ti nc ur r e d e ac ht i meauni ti smanuf ac t ur ed? A. Thr oug hputc os t i ng. B. I ndi r ec tc o s t i ng. C. Pr oc e s sc o s t i ng . D.Abs or pt i o nc os t i ng . E. Bac kflus hc os t i ng.

36.Or i on' smanage mentr ec e nt l yc o mmi t t edt oi nc ur r i ngdi r ec tl aborandal l manuf ac t ur i ngo ver he adc har ge sr e gar dl es soft henumbero funi t spr o duc ed.Under t hr oughputc os t i ng,t hec ompany' sc o s to fgo o dss o l dwoul di nc l udec har gesf o r : A. s e l l i ngandadmi ni s t r at i v ec os t s . B. di r ec tmat e r i al s . C. di r ec tl aborandmanuf ac t ur i ngo ver he ad. D.di r ec tmat er i al s ,di r ec tl abor ,andmanuf ac t ur i ngo ver he ad. E. di r ec tmat e r i al s ,di r e c tl abor ,manuf ac t ur i ngo ve r he ad,ands e l l i ngand admi ni s t r at i v ec os t s .

37.Hi ghl i neCompanyr epor t edt hef ol l o wi ngc o s t sf o rt hey e arj us tended: Thr oughputmanuf ac t ur i ngc os t s Nont hr oughputmanuf ac t ur i ngc os t s Se l l i ngandadmi ni s t r at i vec os t s

P180, 000 600, 000 125, 000

I fHi ghl i neus est hr oug hputc os t i ngandhads al esr e venue sf ort hepe r i o do f P950, 000,whi c ho ft hef ol l o wi ngc hoi c esc or r e c t l ydepi c t st hec ompany' sc os to fgo ods s ol dandne ti nc ome ? Cos tof Ne t Goo ds I nc o me Sol d A. P180, 000 P45, 000 B. P180, 000 P645, 000 C. P305, 000 P45, 000 D. P305, 000 P645, 000 E. Someo t herc ombi nat i ono ffigur esno tl i s t edabo ve.

38.Thefixedo ve r he advol umevar i anc eunderv ar i abl ec o s t i ng: A. c o i nc i deswi t ht hefixedmanuf ac t ur i ngo ver he adt hatwasappl i e dt opr o duc t i on. B. i sde duc t e dont hei nc omes t at e ment . C. doesno texi s t . D.wi l le qualt hefixe do ver he adbudge tvar i anc e. E. mus tbeunf avor abl e .

39.Whi c ho ft hef ol l o wi ngdi ffer sbet weenabs or pt i onc os t i ngandvar i abl ec o s t i ng? A. Thenumbero funi t spr oduc ed. B. Thefixedover he advol umevar i anc e. C. Sal e sr eve nues . D.Thet r e at mentofvar i abl emanuf ac t ur i ngo ver he ad. E. I nc o met axr at es .

40.Cons i de rt hes t at e me nt st hatf o l l o w. 1.Var i abl es e l l i ngc os t sar ee xpens edwhe ni nc ur r ed. 2.Thei nc o mes t at ementdi s c l o s esac ompany’ sc o nt r i but i o nmar gi n. 3.Fi xedmanuf ac t ur i ngo ve r he adi sat t ac hedt oe ac huni tpr oduc e d. 4.Di r ec tl aborbe c omespar tofauni t ’ sc os t . 5.Sal esr e ve nuemi nusc o s to fg oodss ol de qual sc ont r i but i onmar gi n. 6.Thi sme t ho dmus tbeus e df ore xt e r nalfinanc i alr epo r t i ng. 7.Fi xeds e l l i ngandadmi ni s t r at i vee xpens esar et r e at edi nt hes amemanneras fixedmanuf ac t ur i ngo v er he ad. 8.Thi sme t ho di ss o me t i me sc al l e df ul lc o s t i ng. 9.Thi sme t ho dr equi r e st hec al c ul at i ono fafixedmanuf ac t ur i ngc o s tperuni t . Re qui r ed: De t er mi newhi c ho ft heni nes t at e ment s : A.Re l at eo nl yt oabs or pt i o nc o s t i ng.3, 6, 8, 9 B.Re l at eo nl yt ov ar i abl ec o s t i ng . 2,7 C.Re l at et obo t habs o r pt i onc os t i ngandvar i abl ec os t i ng .1, 4 D.Re l at et onei t herabs o r pt i o nc os t i ngnorvar i abl ec os t i ng. 5 41.CVPanal ys i sc anbeus edt os t udyt hee...