23. The difference between sales price per unit and variable cost per unit is th
ID: 2466255 • Letter: 2
Question
23. The difference between sales price per unit and variable cost per unit is the: A. Gross profit from sales. B. Gross margin per unit. C. Fixed cost per unit. D. Margin of safety per unit. E. Contribution margin per unit. 24. The margin of safety is the excess of A. Break-even sales over expected sales. B. Expected sales over variable costs. C. Expected sales over fixed costs D. Fixed costs over expected sales. E. Expected sales over break-even sales. es over break-even sales 25. A method that estimates cost behavior by connecting the costs linked to the highest and lowest volume levels on a scatter diagram with a straight line is called the: A. Scatter method. B. High-low method. C. Least-squares methood. D. Break-even method. E. Step-wise method. 26. Operating budgets include all the following budgets except the: A. Sales budget. B. Selling expense budget. C. Cash budget. D. Merchandise purchases budget E. General and administrative expense budget. 27. The set of periodic budgets that are prepared and periodically revised in the practice of continuous budgeting is called: A. Production budgets B. Sales budgets C. Cash budgets D. Rolling budgets E. Capital expenditures budgetsExplanation / Answer
Answer
23. The difference between sales price per unit and variable cost per unit is the :
Answer : E. Contribution margin per unit
24. The margin of safety is the excess of
Answer : E. Expected sales over break even Sales
25. A method that estimates cost behavior by connecting the costs linked to highest and lowest volume levels on a scatter diagram with a straight line is called the
Answer : B. High-low method
26. Operating budgets include all the following budgets except the
Answer : C. Cash budget
27. The set of periodic budgets that are prepared and periodically revised in the practice of continuous budgeting is called
Answer : D. Rolling Budgets
28. A Cost of remains the same in total even when volume of activity varies is a
Answer : A. Fixed Cost
29.
Figures in $
Particulars
Amount
Sales
a
275000
(25000*11)
Variable costs
b
150000
(25000*6)
Contribution (a-b)
c
125000
Pretax income
d
60000
Total Fixed Cost (c-d)
65000
Answer : A. $ 65000
30. Effective budgeting requires all of the following except
Answer : B. Determination of budgets by top levels of management.
31
Figures in $
Particulars
Amount
Opening Balance
12000
Cash receipts
30000
Cash disbursements
-34500
Balance maintenance
-10000
Required cash
-2500
Answer B. Borrow $ 2500
Figures in $
Particulars
Amount
Sales
a
275000
(25000*11)
Variable costs
b
150000
(25000*6)
Contribution (a-b)
c
125000
Pretax income
d
60000
Total Fixed Cost (c-d)
65000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.