loss at any given level of sales is measured by the vertical dis 173 In a CVP graph, the anticipated profit between the total revenue line (sales) and the total fixed expense line 18.) Two companies with the same margin of safety in dollars will also have the same total contribution margin 19) What effect will overapplicd overhead have on net operating income? a. Net operating income will increase b. Net operating income will be unaffected c. Net operating income will decrease d. Cannot be determined. More information needed. 20) Which method will produce the highest valaes for work in process and finished goods inventories? a. Absorption costing b. Variable costing c. They produce the same values for these inventories d. It depends 21.) Wages paid to the factory warehouse supervisor are considered an example of Direct Labor Period Cost Yes No A) Yes B. Yes No Yes No D) No 22.) The costs of direct materials are classified as: Conversion cost Manufacturing cost Yes Prime cost Yes No No A) Yes No Yes No Yes D) No Yes Yes 23.) Manufacturing overhead includes: A) all direct material, direct labor and administrative costs B) all manufacturing costs except direct labor C) all manufacturing costs except direct labor and direct materials D) all selling and administrative costs. 24) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n) A) period cost B) direct material cost C indirect material cost D) opportunity cost 2806