QUESTION 21

The breakeven point in dollars can be determined by multiplying breakeven units by the selling price.

True

False

QUESTION 22

The operating capacity required to satisfy anticipated sales demand is

	A.	normal capacity.
	B.	excess capacity.
	C.	practical capacity.
	D.	theoretical capacity.

QUESTION 23

Which of the following stages of the management decision-making process is improperly sequenced? That is in which choice is a later step in the process shown ahead of an earlier step?

	A.	Evaluate possible courses of action (then) Make decision.
	B.	Assign responsibility for the decision (then) Identify the problem.
	C.	Identify the problem (then) Determine possible courses of action.
	D.	Assign responsibility for decision (then) Determine possible courses of action.

QUESTION 24

A fixed cost may change when it is outside the relevant range.

True

False

QUESTION 25

At the breakeven point, sales equal total costs.

True

False

QUESTION 26

The breakeven point is

	A.	where fixed and variable costs reach the upper level of the relevant range.
	B.	where total revenue equals total costs.
	C.	where fixed costs meet variable costs.
	D.	the level of activity where all fixed costs are recovered.