d. S40,600 interest dates. 1 and S40,600 between January 40. On June 1, s40,000 of treasury bonds were purchased on $600. The bonds pay interest at 12%. which is paid ally Jul interest revenue will be recorded on July 1? a. $2,000 b. S400 c. $406 d. $2,400 True/Falsc is true or false. Indicate whether the statement Ke41. The sales budget is the starting point for preparation of the direct labor cost budge 42. The contribution margin ratio is the same as the t-volume ratio. profi rule e 43. In an absorption costing income statement, the manufacturing margin is the exce cost of goods sold. ne 44. Total variable costs change as the level of activity changes. 45. If direct materials cost per unit increases, the break-even point will decrease. tale 46. If a business sells two products, it is not possible to estimate the break-even 47. A staff department has no direct authority over a line department. lne 48. The cash budget is affected by the sales budget, the various budgets for ma expenses, and the capital expenditures budget. 49. Growth firms generally pay regular dividends to stockholders. 50. A cost can be a payment of cash for the purpose of generating revenues. lne 51. Since there are few rules to restrict how an organization chooses to arra making, managerial accounting provides ample opportunity for creativi 52. Period costs include direct materials and direct labor