Chapter 4 Review

If there is an increase in the selling price per unit

• Contribution margin will increase

• Breakeven point increases

• Units needed for desired profit will increase

• Both contribution margin and breakeven point decrease

A decrease to total fixed cost will result in

• an increase in contribution margin

• a decrease in breakeven point

• an increase in units needed for desired profit

• no change in contribution margin or breakeven point

An increase in the tax rate will cause

• an increase in the breakeven point

• a decrease in units needed for desired profit

• no change to the breakeven point

• no change in units needed for desired profit

The lumber used to make a table is a(n)

• Unit cost

• Batch cost

• Product-sustaining cost

• Facility-sustaining cost

The cost incurred for heating and lighting the factory is a(n)

• unit cost

• batch cost

• product-sustaining cost

• facility-sustaining cost

The cost of developing a marketing campaign is an example of

• unit cost

• batch cost

• product-sustaining cost

• facility-sustaining cost

The cost of the material to make a jacket is

• a unit cost

• a batch cost

• a product-sustaining cost

• a facility-sustaining cost

The salary of a production supervisor is

• a unit cost

• a batch cost

• a product-sustaining cost

• a facility-sustaining cost

Insurance on the factory is

• a unit cost

• a batch cost

• a product-sustaining cost

• a facility-sustaining cost

Salary for the quality control inspector is

• a unit cost

• a batch cost

• a product-sustaining cost

• a facility-sustaining cost