I need answers to the following questions for a study guide.

Question 1.)

Which of the following costs involves a choice between potential sources of profit?

A. Sunk cost / B. Opportunity cost / C. Fixed cost / D. Out of pocket cost

Question 2.)

What would be the most common basis for the allocation of janitorial services by department?

A. Hours worked / B. Number of employees / C. Floor space / D. Units produced

Question 3.)

Which of the following would be considered a fixed cost?

A. Hours worked / B. Materials used / C. Maintenance on equipment / D. Rent

Question 4.)

Which of the following is an example of a sunk cost?

A. Depreciation expense / B. Labor / C. Rent / D. Materials

Question 5.)

Which of the following is the most common basis for allocation accounting costs by department?

A. Hours worked / B. Floor space / C. Transactions / D. Number of employees

Question 6.)

Which of the following is the most common basis for allocating assembly costs by department?

A. Hours worked / B. Floor space / C. Number of employees / D. None of the above

Question 7.)

Which type of costs would not be considered in decision making?

A. Variable cost / B. Direct cost / C. Indirect cost / D. Sunk cost

Question 8.)

An item has a selling price of $500, and variable cost per unit of $210. Calculate the unit contribution margin, and the contribution margin ratio.

Question 9.)

Assume the information from problem 1. In addition the company has fixed costs of $25,000 per month, and a monthly capacity of 2,000 units. Calculate the break-even point for this company and express it in sales dollars.

Question 10.)

A Company has expected sales of $110,000 and break-even sales of $75,000. Calculate the Margin of Safety, and show the answer as a percentage.

Question 11.)

Explain the difference between Managerial and Financial Accounting