Question
A volume-based cost system is likely to assign more manufacturing overhead costs to products: a. that sell more units than others b. that are more
A volume-based cost system is likely to assign more manufacturing overhead costs to products:
a. | that sell more units than others | |
b. | that are more complex or difficult to manufacture than others | |
c. | with higher per-unit materials costs than others | |
d. | with more activity costs than others |
All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases?
a. | Both unit contribution margin and contribution margin ratio decrease. | |
b. | Unit contribution margin increases while contribution margin ratio decreases. | |
c. | Unit contribution margin decreases while contribution margin ratio increases. | |
d. | Both unit contribution margin and contribution margin ratio increase. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started