1. A static budget

   	A.	is a projection of budget data at a single level of activity after actual activity occurs
   	B.	is a series of static budgets at different levels of activity
   	C.	none of the above
   	D.	is a projection of budget data at a single level of activity before actual activity occurs

QUESTION 26

1. An investment center

   	A.	incurs expenses and revenues and return on investment
   	B.	incurs only revenue
   	C.	always makes a profit
   	D.	incurs only expenses

QUESTION 27

1. All of the following are ways to improve ROI except

   	A.	Increasing sales
   	B.	Decreasing costs
   	C.	Reducing average operating assets
   	D.	Decreasing sales

QUESTION 28

1. ABC Company completes a job at a cost of $2,000 and later sells it for $5,000 cash. A correct entry is

   	A.	debit cost of goods sold $5,000 and credit finished goods inventory $5,000
   	B.	debit finished goods inventory for $2,000 and credit work in process inventory $2,000
   	C.	debit accounts receivable $2,000 and credit sales revenue $2,000
   	D.	debit finished goods inventory for $5,000 and credit work in process inventory $5,000

QUESTION 29

1. Conversion costs are

   	A.	direct labor costs plus overhead cost
   	B.	direct labor costs and indirect labor costs
   	C.	fixed plus variable overhead costs
   	D.	direct material cost plus overhead cost

QUESTION 30

1. ABC Company is planning to sell 100,000 widgets for $10.00 per widget. Contribution margin ratio is 25%. If ABC Company will break even at this level of sales, what is the fixed costs?

   	A.	$200,000
   	B.	$100,000
   	C.	$250,000
   	D.	$1,000,000