1. During February, the cost of goods manufactured was $83,000. The beginning finished goods inventory was $13,000 and the ending finished goods inventory was $13,000. What was the cost of goods sold for the month?

A) $83,000 B) $110,000 C) $82,000 D) $84,000

2. Indirect material is a part of:

A) Prime cost. B) Conversion cost. C) Period cost. D) Nonmanufacturing cost.

3. If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will:

A) decrease. B) increase. C) not change. D) change but direction cannot be determine

4.Alpha Company reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is:

A) 10 B) 2 C) 4 D) 2.5