Which of the following is a correct form of the break-even equation when using activity-based costing? a. BE ($) =...
Which of the following is a correct form of the break-even equation when using activity-based costing?
| a. |
BE ($) = (fixed costs + batch-level costs)/contribution margin per unit |
|
| b. |
BE (units) = (fixed costs + facility-level costs)/contribution margin per unit |
|
| c. |
BE ($) = (fixed costs + batch-level costs + product-level costs)/contribution margin per unit |
|
| d. |
BE (units) = (fixed cost + batch-level costs + product-level costs)/contribution margin per unit |
If a company has a positive contribution margin but net income is low or negative, what are some ways of increasing net income?
|
increase sales price |
||
|
increase sales volume |
||
|
decrease variable costs |
||
|
all of the above |
When using job costing, the following two components of product costs must be carefully measured and track:
|
direct labor and factory overhead |
||
|
direct material and direct labor |
||
|
direct material and indirect labor |
||
|
indirect mater and indirect labor |
Homework Answers
Break-even equation when using activity-based costing is as under :
BE (units) = (fixed costs + facility-level costs)/contribution margin per unit
Correct option is (b)
If a company has a positive contribution margin but net income is low or negative, following ways of increasing net income :
Increase sales price, increase sales volume and decrease variable costs
Fourth option is the correct option.
When using job costing, the direct material and direct labor of product costs must be carefully measured and track
Second option is the correct option.
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