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Practice questions for this set
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identify the primary activities and estimate a total cost pool for each.
Choose an answer
A contribution margin income statement allows managers to see which costs will change with
1
changes in volume and which costs will remain fixed.
2 What term represents the fixed cost component in the equation: y = vx + f?
A plantwide overhead rate is calculated by dividing the estimated total manufacturing overhead
3
costs for the year by estimated total amount of the allocation base for the year.
4 The first step in developing an ABC system is
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Terms in this set (29)
A contribution margin income True
statement allows managers to
see which costs will change with
changes in volume and which
costs will remain fixed.
When graphing total fixed costs, False
the fixed cost per unit is the
slope of the fixed cost line.
When graphing total variable True
costs, the cost line begins at the
origin.