Question

QUESTION 7 Contribution margin is the amount remaining after: O 1.variable expenses have been deducted from sales revenue O 2. fixed expenses have been deducted from sales revenue O 3. fixed expenses have been deducted from variable expenses 4. cost of goods sold has been deducted from sales revenue QUESTION 8 Select the appropriate classification of quality cost for each activity. A. Testing&Inspection of incoming raw materials Quality Improvement Projects Warranty Repairs appraisal B. external failure internal failure D. prevention QUESTION9 Overhead in more likely to be over-applied if (select one): O 1. Control over actual overhead costs is poor. O 2. The actual amount of the overhead allocation base (like labor hours) is more than estimated. QUESTION 10 For each of the following costs identify whether it is a Product or Period cost A Period Cost B.Product Cost Manufacturing Overhead Salary of receptionist in administrative office

Answer 1

7)Contribution Margin= Sales revenue-Variable expenses
So it is Option 1
8)testing and inspection: It is option A
Quality improvement: it is option D
Warranty repairs:It is option B
9)product costs includes direct material,direct labout,manufacturing overhead
Period costs include selling expense,ad expenses
manufacturing overhead: Option B
Salary of admin: Option A