Question 2 of 14 View Policies Current Attempt in Progress A company uses sandpaper in its production process. How is the cost of the sandpaper classified? O a direct material O a period cost O a product cost O an insignificant expense that can be ignoredQuestion 3 of 14 View Policies Current Attempt in Progress What are the components of total manufacturing costs? O direct materials and direct labour only 0 manufacturing overhead only O direct materials, direct labour, and manufacturing overhead 0 direct labour and manufacturing overhead only Question4of14 -/2 E View Policies Current Attempt in Progress A company loses its opening nancial records in a re. During the following year, it incurred costs of production of $250000 and sold $292000 in merchandise. It took an inventory count and found that it had $106000 of product on hand. What should the company's opening inventory show before the fire? 0 $106000 0 $148000 0 $42000 0 Cannot be determined from the above information. Question 6 of 14 - / 0.5 ... WN - View Policies Current Attempt in Progress In CVP analysis, O it is assumed that more than one type of product is sold, the sales mix will vary. O it is assumed that all costs can be classified as either variable or fixed. O it is assumed the term 'cost' includes only manufacturing costs. O it is assumed that costs must be classified as either fixed, mixed, or variable.Question 7 of 14 View Policies Current Attempt in Progress Sheridan Toys has actual sales of $408000 and a break-even point of $252960. What is its margin of safety ratio? 0 38% O 62% O 61.3% C) 261% Question 8 of 14 - / 2 E View Policies Current Attempt in Progress Last year Easton Company reported sales of $720,000, a contribution margin ratio of 30% and a net loss of $24,000. Based on this information, the break-even point was: 0 $640,000 0 $880,000 0 $744,000 0 $800,000 0 none of the above Question 10 0114 View Policies Current Attempt in Progress When making decisions, a general rule would be: 0 xed costs are always relevant 0 future costs and revenues are always relevant 0 future revenues and costs which differ between alternatives are always relevant 0 variable (unit-level) costs are always irrelevant -/0.5 1 z : Question 11 of14 /0.5 E View Policies Current Attempt in Progress In a sell or process further decision, 0 the allocation ofjoint product costs is important and relevant. C) it is better to process further rather than sell now ifthe sales price increases. 0 management should process further as long as the incremental revenues from additional processing are greater than the incremental costs. 0 the basic decision rule is: process further if the total processing costs exceeds the incremental revenue. Question 12 of14 _ / 2 ;: : View Policies Current Attempt in Progress Crane Company manufactures a product with a unit variable cost of $41 and a unit sales price of $74. Fixed manufacturing costs were $79000 when 7900 units were produced and sold, equating to $10 per unit. The company has a one-time opportunity to sell an additional 1000 units at $54 each in an international market, which would not affect its present sales. The company has sufcient capacity to produce the additional units. How much is the relevant income effect of accepting the special order? 0 $41000 O $23700 O $13000 0 $3000