QUESTION 16

1. The following sales data is provided for F Company's product A:
2. BudgetedActual
3. Unit SellingPrice$10$8
4. Unit salesvolume10,00012,000
5. What was the product A's sales volume variance?

a. $24,000 unfavorable

b. $20,000 favorable

c. $16,000 favorable

d. $24,000 favorable

QUESTION 19

1. Select the incorrect capital budgeting decision rule from the following.

a. Under the PI model, accept all projects whose PI is 1.0 or lower.

b. Under the NPV model, accept a project whose NPV is zero.

c. Under the NPV model, accept a project whose NPV is positive.

d. No general decision rule is available for the payback model.

QUESTION 27

1. When a scarce resource, such as space, exists in an organization, the criterion that should be used to determine production is

a. contribution margin per unit

b. selling price per unit

c. total variable costs of production.

d. contribution margin per unit of scarce resource.