Question

1.Which of the following would most likely be included in manufacturing overhead?

a.rent on the company’s store

b.insurance on a delivery truck

c.rent on the company’s factory

d.an oil change on a delivery truck

2.Which one of the following is true concerning a CVP income statement?

a.Costs and expenses are classified only by function

b.It is prepared for both internal and external use.

c.It shows contribution margin instead of gross profit.

d.Costs and expenses are classified as product or period

3.What is true of budgets?

a.They are voted on and approved by shareholders

b.They are used in the planning, but not the control process

c.There is a standard form and structure for budgets.

d.They are used in performance evaluation.

Answer 1