Costs | Absorption vs Variable | Budgets |
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What is True
True or False an increase in sales price per unit will lower breakeven point
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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 |
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?
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What is True
True or Fasle: The breakeven point will increase if VC increase even when FC and sales price remain
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What is cost variance and efficiency variance
What for sure equations should you have on your sheet of paper?
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What is cash planning to ensure adequate funds
What does a cash budget do?
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What is remains the same
If FC decreases the contribution margin per unit
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What is variable costing
If trying to relate production planning with capacity limits in the short run which costing method is more appropriate?
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What is sales budget
Where should the budget process begin?
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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?
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What is When there are no beginning or ending finished goods inventories
When will variable and absorption costing result in the same operating profits?
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What is dollar amount that provides for covering fixed costs and then provides for operating income
Describe contribution margin
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What is variable
what type of cost will change in relation to change in volume
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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?
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What is direct material budget?
What budget is prepared on the basis of the production budget?
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