DLA Question One Lire and False) Please state whether each of the on the CVP The break-even pointer n expenses equal total contributio extensive 3 ABC costing system has allocate costs in significant way i ng 4. A budget is a qualitative plan for acquir specified period T The disbursements section of a cash boot consists of a payments for the period except cash payment for dividends the badge The selling and administrative expense budget is expenses for areas other than manufacturing T The contribution approach to income statement classifies cost by behavior rather than by function T Committed costs are long term in nature and cannot be significantly reduced in the short term. (10 marke Question two: MCO Choose and encircle the most suitable answer for each of the following statement (cach 1. At the break-even point: a) Contribution margin would be equal to fixed expenses. b) Sales would be equal to contribution margin c) Contribution margin would be equal to net operating income. d) Sales would be equal to fixed expenses. 2. Which of the following is NOT a period cost? a) Monthly depreciation of the equipment in a fitness room used by factory work b) Salary of a billing clerk. c) Insurance on a company showroom, where current and potential customers products. d) Cost of a seminar concerning tax law updates that was attended by the com 3. All of the following are examples of product costs except: a) Depreciation on the company's retail outlets. b) Salary of the plant manager. c) Insurance on the factory equipment. d) Rental costs of the factory facility. 4. Which of the following budgets are prepared before the cash budget? Selling and Administrative Production Budget Expense Budget Yes Yes Yes No Yes No No