5. To stay in business, a company must have a selling price that is a acceptable to the customer. b. able to recover the variable costs of production c. the highest in the marketplace d. equal to or lower than the company's costs per unit. a. 6. Many organizations utilize responsibility accounting to assist in building performance measures for the organization b. to assist in performance management and evaluation c. solely to evaluate how well employees are handling their responsibilities. d. as an alternative to generally accepted accounting principles. a 7. How is the contribution margin calculated when utilizing variable costing? Sales less variable cost of goods sold b. Sales less variable cost of goods sold, less variable selling and administrative expenses Sales less cost of goods sold d. Sales less variable cost of goods sold, less variable selling and administrative expenses, less fixed cost of goods sold, less fixed selling and administrative expenses C 8. When gross margin pricing is used, the markup percentage includes desired profits plus total selling, general, and administrative expenses. b. Only the desired profit factor. c. total costs and expenses d. desired profits plus total fixed production costs plus total selling, general, and administrative expenses esi g Multiple Choice Questions. 1. Which of the following is not a product cost? a. Depreciation of office furniture b. Overhead c. Direct labor d. Direct materials