Question
12. When a company uses ABC: to. Cannot perform cost-volume-profit (CVG) analysis b. Can perform CVG analysis, but only with variable costs c. Can perform
12. When a company uses ABC: to. Cannot perform cost-volume-profit (CVG) analysis b. Can perform CVG analysis, but only with variable costs c. Can perform CVG analysis, but only with fixed costs d. All of the above are incorrect.
13. CVG analysis requires certain assumptions, among which are: to. The unit sales price is constant throughout the relevant range b. Costs are linear through the relevant range c. There is no inventory or the inventory level is constant d. All of the above
14. Operating leverage results from costs: to. Variables b. Fixed c. Semi variable d. None of the above
15. Assume that the unit sales price is $ 20, the variable unit cost is $ 12, and the total fixed cost is $ 240,000. The breakeven point is:
to. 12,000 units b. 30,000 units c. $ 600,000 d. b and c are correct
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