ACCOUNTING 106- MANAGERIAL ACCOUNTING TEST ON CHAPTERS FIVE AND SIX NAME: 1. The contribution margin equals total fixed costs at the breakeven point. T OR F 2. The weighted-average contribution margin is computed by multiplying each product's unit contribution margin by its sales mix percentage. T OR F 3. Within the relevant range, fixed and variable costs behave similarly. T OR F 4. Unit fixed costs vary proportionally with activity or volume. T OR F 5. Adding a desired profit level to breakeven computations will increase the number of 6. Cost behavior is defined as the manner in which costs respond to changes in sales units. TOR F 7. The Cost of Goods Sold account will have the same ending balance whether using 8. In cost-volume-profit, sales revenue is computed by multiplying units sold by the 9. Which of the following is a variable manufacturing cost? volume or activity. T OR F variable or absorption costing. T OR F contribution margin per unit. T OR F a. Depreciation costs computed using units of production method b. Indirect labor costs c. Factory rent d. President's salary 10. Which of the following statements most accurately explains the behavior of costs? a. The majority of costs are variable per unit of production. b. There is no norm; rather, costs can be fixed, variable or a combination of both. The majority of costs are fixed per unit of production. Costs can be fixed or variable but usually not a combination of both. c. d. 11. Misleading cost numbers are most likely the result of misallocating a. direct material costs b. direct manufacturing labor costs c. indirect costs d. All of the above are correct. 12. At production levels below the breakeven point, a. variable costs are zero. b. profit is positive. c. fixed costs are not recovered. d. profit is negative. 13. If a company increases its fixed cost for Product B, then the contribution margin per unit will a. increase. b. remain the same. c. decrease