7a)

A production cost report shows units and costs. Which one of the following sections is not shown under costs?

	a.	Costs started into production.
	b.	Unit costs.
	c.	Units transferred out.
	d.	Costs to be accounted for.

5b)

Under what situation are units started equal to units completed in production?

	a.	when beginning Work in Process equals zero and units started in production equals the total of ending Work in Process and units transferred out.
	b.	when beginning inventory equals zero.
	c.	when beginning Work in Process equals ending Work in Process.
	d.	when physical units equals equivalent units.

5c)

What is a production cost report used for?

	a.	It shows costs charged to a department and costs accounted for.
	b.	It shows the basis on which overhead is allocated.
	c.	It shows equivalent units of production but not physical units.
	d.	It is an external report provided to shareholders.

5d)

Contribution margin is ___.

	a.	sales revenue less variable expenses
	b.	sales revenue less fixed and variable expenses
	c.	fixed expenses less variable expenses
	d.	sales revenue less cost of goods sold

5e)

A CVP income statement

	a.	separates costs based on behaviour.
	b.	classifies costs into three sections based on behaviour.
	c.	shows contribution margin and gross profit.
	d.	shows revenue less fixed costs as contribution margin.

5f)

In CVP analysis, what does the term "cost" mean?

	a.	It includes all costs which are part of cost of goods sold.
	b.	It includes all manufacturing costs.
	c.	It includes all fixed and variable costs of products.
	d.	It includes manufacturing costs plus selling and administrative expenses.