Costs Absorption vs Variable Budgets
100
What is True
True or False an increase in sales price per unit will lower breakeven point
100
What is C
With absorption costing, operating profit can be:
A) decreased by increasing production without decreasing sales
B) increased by decreasing sales and keeping production equal to sales
C) increased by increasing production without increasing sales
D) decreased by increasing the level of ending Finished Goods Inventory
100
What is flexible budget variance
the difference in actual results and the expected results in the flexible budget for the actual units sold is what variance?
200
What is True
True or Fasle: The breakeven point will increase if VC increase even when FC and sales price remain
200
What is cost variance and efficiency variance
What for sure equations should you have on your sheet of paper?
200
What is cash planning to ensure adequate funds
What does a cash budget do?
300
What is remains the same
If FC decreases the contribution margin per unit
300
What is variable costing
If trying to relate production planning with capacity limits in the short run which costing method is more appropriate?
300
What is sales budget
Where should the budget process begin?
400
What is total costs will increase by less then the volume change
If production remains within the relevant range what is true of total costs?
400
What is When there are no beginning or ending finished goods inventories
When will variable and absorption costing result in the same operating profits?
400
What is dollar amount that provides for covering fixed costs and then provides for operating income
Describe contribution margin
500
What is variable
what type of cost will change in relation to change in volume
500
What is the units in the beginning finished goods inventory have manufacturing fixed costs assigned to them
When production is less than sales, the operating income will be lower under absorption costing than variable costing. Assume zero ending inventories. Why is this?
500
What is direct material budget?
What budget is prepared on the basis of the production budget?






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