1. In gross profit analysis, a favorable cost of sales variance that includes an unfavorable cost volume variance will mean:

The production department was able to control costs within the budget but the purchasing department went over the budget.

The purchasing department was able to control costs within the budget but the production department over the budget.

The production and purchasing department were able to control costs within the budget.

The production and purchasing departments went over the budget.

None of the above

2. A cost variance of zero indicates that the manufacturing management was?

- unable to keep production costs at budgeted costs even if the purchasing department was able to keep the budgeted price.

- able to control production cost below budgeted costs.

- unable to keep production costs at budgeted costs.

- able to control production costs at budgeted costs.

3. Variance that arises solely because the actual units sold differs from the budgeted units to be sold.

Sale price variance

Sales volume variance

None of the above

4. Although there are many reasons to this concern, one of the general reasons in gross profit variance analysis why an unfavorable sales volume variance occur is that:

- the figures are not properly accounted for.

- the accounts are taking too long to collect.

- the finished product is over priced.

- the company's product is not properly marketed.

- the raw materials used are overpriced.

5. The gross profit percentage is equal to

- Net operating income/Sales

- Cost of goods sold/Sales

- (Net operating income + Operating expenses)/Sales

- Cost of goods sold/Net income

- (Net operating income - Operating expenses)/Sales

please give an answer in each number