MAS 2

MAS 2

University

15 Qs

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CHAPTER 2 : DEMAND & SUPPLY THEORY

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MAS 2

MAS 2

Assessment

Quiz

Business

University

Practice Problem

Easy

Created by

Mary Pangalay

Used 2+ times

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15 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What are the classifications of costs based on function?

D. Product, Period, Differential

B. Manufacturing, Selling, Administrative

A. Variable, Fixed, Semi-Variable

C. Direct, Indirect, Overhead

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which cost remains constant per unit but changes in direct relationship with quantity?

D. Mixed Cost

C. Variable Cost

B. Semi-Variable Cost

A. Fixed Cost

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is the relevant range assumption in cost behavior?

C. Parabolic relationship also known as 'Curvilinear relationship'

D. All of the above

B. Linear relationship or straight-line relationship

A. Band of activity within which the identified cost behavior patterns are valid

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is the point of activity level where total revenues equal total costs, resulting in neither profit nor loss?

B. Margin of Safety

A. Break-even Point

D. Degree of Operating Leverage

C. Cost Indifference Point

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What will change as long as any of the factors needed to compute for total revenues or total cost will change?

C. Volume or number of units

B. Variable cost per unit

A. Selling price per unit

D. All of the above

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is the formula for calculating Break-even Point in units?

B. Total Fixed Costs / Contribution Margin per Unit

D. Total Sales Units - MOS Units

A. Total Fixed Costs / Contribution Margin Ratio

C. Selling Price per Unit - Variable Cost Per Unit

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What does the degree of operating leverage (DOL) measure?

B. The amount by which actual or planned sales may be reduced without incurring a loss

A. Sensitivity of a company's operating income to its sales

C. The difference between actual or planned sales volume and break-even sales

D. The point at which total cost of two alternatives under consideration is the same

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