Chose the correct answer:

1.Indirect material is a part of:

A) Prime cost.

B) Conversion cost.

C) Period cost.

D) Nonmanufacturing cost.

2. During February, the cost of goods manufactured was $83,000. The beginning finished goods inventory was $13,000 and the ending finished goods inventory was $13,000. What was the cost of goods sold for the month?

A) $83,000

B) $110,000

C) $82,000

D) $84,000

3. If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will:

A) decrease.

B) increase.

C) not change.

D) change but direction cannot be determined

4. Alpha Company reported the following data for its most recent year: sales, $500,000; variable expenses, $300,000; and fixed expenses, $150,000. The company's degree of operating leverage is:

A) 10

B) 2

C) 4

D) 2.5