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.What is the sales mix expressed in terms of units but not revenues

.What is the sales mix expressed in terms of?

a.units but not revenues

b.either revenues or units

c.revenues but not units

d.neither units nor revenue




82.Which of the following should be used to compute the sales mix so that the break-even computation is meaningful to management?

a.the expected mix

b.the most desirable mix

c.the least desirable mix

d.the traditional mix




83.Which of the following is NOT an assumption of a cost-volume-profit analysis?

a.Selling price and costs can be accurately identified.

b.Selling price and costs remain constant within the relevant range.

c.Inventory levels can increase or decrease.

d.Selling price and costs behave in a linear manner.




84.What “what-if” technique examines the impact on an answer as a result of changes in underlying assumptions? of sensitivity

b.sensitivity training

c.sensitivity analysis of operating leverage




85.What is the result when actual sales equal break-even sales?

a.the margin of safety is negative

b.the margin of safety is positive

c.the margin of safety equals zero

d.the margin of safety is negative or positive




86.What is the formula to calculate the margin of safety in dollars?

a.expected sales – expected profit

b.expected sales – sales at break-even

c.costs at break-even – expected profit

d.expected costs – costs at break-even




87.Which of the following can be considered a measure of risk in cost-volume-profit analysis?

a.margin of safety

b.contribution margin ratio

c.contribution margin

d.fixed cost




88.By what amount can sales decline before losses are incurred? the contribution margin the margin of safety the degree of operating leverage the fixed costs




89.What would be the effect on the break-even point if sales remain the same and the margin of safety increases?

a.The break-even point would increase.

b.The break-even point would decrease.

c.The break-even point would decrease by half.

d.The break-even point would remain the same.




90.Which of the following measures the sensitivity of profit changes to changes in sales volume?

a.contribution margin ratio

b.variable cost ratio

c.operating leverage of operating leverage





91.Which is characteristic of operating leverage?

a.concerned with the relative mix of contribution margin and margin of safety

b.the use of fixed costs to extract higher percentage changes in profits as sales activity changes

c.likely to be lower in an automated manufacturing system than in a manual system

d.provides the same information as margin of safety




92.Which of the following measures the percentage change in profits resulting from a percentage change in sales?

a.variable cost leverage

b.contribution margin ratio of operating leverage

d.sales margin ratio




93.What formula is used to calculate the degree of operating leverage?

a.contribution margin/profit

b.profit/fixed costs

c.profit/variable costs sales/profit




94.What is operating leverage the relative mix of?

a.revenues earned and manufacturing costs

b.fixed and variable costs

c.high-volume and low-volume products

d.manufacturing costs and period costs




95.Which graph depicts the relationships among total variable costs, total fixed costs, number of units, and operating income?

a.cost graph

b.volume graph

c.cost-volume-profit graph

d.break-even graph

Mar 13 2020 View more View Less

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