Cost-Volume-Profit Analysis

"Change in total when the level of production changes." Based on this definition what are the example?

• direct material

• factory rent

• salesman's salary

• insurance

What type of cost if the cost relates to the manufacture?

• period cost

• product cost

• cost of goods sold

• mixed cost

What the other name of variable costing? (write in small letter)

"Net income under absorption costing will be higher than variable costing when inventory increases."

• True

• False

What are the formula variable costing?

• sales - cogs - expenses

• sales + variable cost - expenses

• sales - expenses - fixed cost

• sales - variable cost - fixed cost

"Variable costing included fixed manufacturing overhead in standard product cost per container. "

• True

• False

If total fixed expenses is RM250,000 and contribution margin per unit is RM30, how many units must the business sell if it wants a net income of RM50,000?

• 8,333 units

• 6,666 units

• 10,000 units

• not enough information to determine the answer

If total fixed costs decrease while the selling price per unit and variable costs per unit remain constant, the (hint: imagine the variable costing format)

• contribution margin increases

• contribution margin decreases

• break-even point decreases

• break-even point increases

Break-even is when:

• revenue less expenses equals zero

• net income is zero

• revenue is equal to costs

• all of above

Contribution margin is equal to:

• fixed expenses plus variable expenses

• fixed expenses minus variable expenses

• sales revenue minus variable expenses

• sales revenue minus fixed expenses