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ACC 561 Week 4 Quiz



ACC 561 Week 4 Quiz A variable cost is a cost that An increase in the level of activity will have the following effects on unit costs for variable and fixed costs A fixed cost is a cost which Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? Contribution margin The equation which reflects a CVP income statement is A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $150,000. The number of units the company must sell to break even is Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using Under absorption costing and variable costing, how are fixed manufacturing costs treated? Management may be tempted to overproduce when using


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