Click to watch the Tell Me More Learning Objective $1$ video and then answer the questions below.

Costs that remain the same in total dollar amount as the activity base changes are called

a$.$ variable costs

b$.$ fixed costs

c$.$ mixed costs

d$.$ None of these are correct.

Costs that vary in proportion to changes in the activity base are called

a$.$ variable costs

b$.$ fixed costs

c$.$ mixed costs

d$.$ None of these are correct.

Costs that have characteristics of both a variable cost and a fixed cost are called

a$.$ variable costs

b$.$ fixed costs

c$.$ mixed costs

d$.$ None of these are correct. Click to watch the Tell Me More Learning Objective $2$ video and then answer the questions below.

All of the following are ways in which cost$-$volume$-$profit analysis may be used except when

a$.$ analyzing the effects of changes in costs on profits

b$.$ analyzing the effects of changes in volume on profits

c$.$ analyzing the effects of changes in selling prices on profits

d$.$ All of these may be used.

d

Contribution margin is the

$.$

a$.$ excess of sales over fixed costs

b$.$ excess of variable costs over sales

c$.$ excess of sales over variable costs

d$.$ None of these are correct. Click to watch the Tell Me More Learning Objective $3$ video and then answer the questions below.

Break$-$even sales in units is computed as

a$.$ Fixed Costs $$ Unit Contribution Margin

b$.$ Fixed Costs $$ Contribution Margin

c$.$ Fixed Costs $$ Contribution Margin Ratio

d$.$ None of these are correct.

a

When the fixed cost increases, the break$-$even point

$.$

a$.$ decreases

b$.$ increases

c$.$ does not change

d$.$ None of these are correct.

If the unit selling price increases, then the break$-$even point

a$.$ decreases

b$.$ increases

c$.$ does not change

d$.$ None of these are correct. Click to watch the Tell Me More Learning Objective $4$ video and then answer the questions below.

Which of the following is a primary assumption in a cost$-$volume$-$profit analysis?

a$.$ Total sales and total costs can be represented by straight lines.

b$.$ There is no change in the inventory quantities during the period.

c$.$ Costs can be divided into fixed and variable components.

d$.$ All of these are correct.

Which type of chart plots only a profit line rather than sales and cost lines?

a$.$ Cost$-$volume$-$profit chart

b$.$ Profit$-$volume chart

c$.$ Profit$-$cost chart

d$.$ Cost$-$volume chartClick to watch the Tell Me More Learning Objective $5$ video and then answer the questions below.

The difference between contribution margin and income from operations is

a$.$ net income

b$.$ variable costs

c$.$ fixed costs

d$.$ None of these are correct.

A company's operating leverage is computed as

$.$

a$.$ contribution margin divided by income from operations

b$.$ contribution margin divided by net income

c$.$ contribution margin ratio divided by income from operations

d$.$ None of these are correct.

The sales mix is the relative distribution of sales among the products sold by a company.

The unit selling price of the overall enterprise product equals the

a$.$ average selling price of the products

b$.$ price of the highest$-$selling product in the mix

c$.$ price of the product with the lowest selling price

d$.$ None of these are correct.