Period Cost No Yes Yes No Product Cost No No Yes Yes A) B) C) D) 3. As current technology changes manufacturing processes, it is likely tha A) materials will increase. B) materials will decrease. C) labor will increase. D) labor will decrease. 4. Which ratios evaluate the company's ability to generate future profits? A) Liquidity B) Solvency C) Profitability D) Materiality S. A weakness of the current ratio is A) that it doesn't take into account the composition of the current B) that it can be expressed as a percentage, as a rate, or as a propo C) that it is rarely used by sophisticated analysts D) the difficulty of the calculation. 6. The contribution margin ratio increases when A) fixed costs decrease. B) fixed costs increase. C) variable costs as a percentage of sales increase. D) variable costs as a percentage of sales decrease. 7. The following information is available for completed Job No. 402: D $90,000, manufacturing overhead applied, $45,000; units produced, : cost of the finished goods on hand from this job is A) $195,000. B) $30,000 C) S156,000. D) $39,000