An understanding of cost behavior is helpful for all except:

Select one:

a. for break-even and cost-volume-profit analysis

b. for long-term financing

c. to appraise divisional performance

d. for flexible budgeting

e. to make transfer decisions

2.

The following factory overhead items may be considered mixed costs except:

Select one:

a. supervision

b. inspection

c. utilities

d. fringe benefits

e. payroll

3.

CVP analysis tries to answer the following questions except:

Select one:

a. what sales volume is required to break-even

b. what sales volume is required to earn a desired profit

c. what number of customers can be expected to give a break-even slaes volume

d. how would changes in selling price, variable price affect profits

e. how would changes in mix of products sold affect break-even and potential profit

4.

For an accurate CVP analysis to compute the break-even point the following concepts are important except:

Select one:

a. contribution margin (CM) ratio

b. graphic approach (B-E) chart

c. profit-volume (P-V) chart

d. margin of safety

e. irrelevant range