1. Gary & Smith Knitting Associates has direct material cost of $1,000 for 2,000 running yards. The direct material cost is which of the following?

Select one:

a. shipping cost

b. variable cost

c. mixed cost

d. fixed cost

e. step cost

2. Breakeven volume is when

Select one:

a. Total Sales equal Total Overhead Costs

b. Total Sales equal Total Assets

c. Total Sales + Cash equal Total Cost + Receivables.

d. Total Assets equal Total Liabilities and Total Equity

e. Total Sales equal Total Costs