there is only one right answer among the answers. Which one of these is the right answer? with a brief explanation.

1-

a) direct labor + direct materials = all manufacturing costs

b) overhead = manufacturing costs prime costs

c) indirect costs + direct costs = overhead

d) indirect labor + indirect materials = direct cost + direct materials + overhead

e) conversion costs = total product costs indirect labor

f) prime costs + overhead = total product costs

2- DM stands for direct materials. DL for direct labor. In Manufacturing companies...

a) revenue - cost of goods manufactured + beginning inventory ending inventory = gross margin

b) DM + DL + overhead beginning work-in-process inventory = total work-in-process throughout

c) revenue gross margin marketing and administration costs = cost of goods sold

d) cost of goods manufactured + beginning inventory ending inventory = net margin

e) operation profit before taxes taxes = revenue cost of goods sold

f) direct labor = direct costs indirect labor indirect materials

3-

FC stands for fixed costs. VC, for variable costs, TC, for total costs. TR, for total revenue.

a) FC are affected by revenue and activity, but not by other costs.

b) VC are affected by other costs, but not by revenue or activity.

c) TC = VC multiplied by FC

d) Revenue = TC VC

e) FC remain constant when VC dont.

f) Variable activity affects revenue as much as FC do.

4- FC stands for fixed costs. VC, for variable costs, TC, for total costs. TR, for total revenue. CM, for contribution

margin. U, for number of units sold.

Break even point is the point at which

Choose the only right answer to complete the sentence above:

a) VC + FC = TC

b) (VC + FC + TR) / 3 = TR

c) CM * U = Total Contribution

d) Total contribution FC = 0

e) Total contribution = TR

f) VC = FC

5- FC stands for fixed costs. VC, for variable costs, TC, for total costs. TR, for total revenue. CM, for contribution margin. U, for number of units sold.

A contribution margin income statement follows top down pattern

a) Revenue Gross Margin = Operating Profit

c) Revenue Variable Administration and Marketing Expenses - Fixed Marketing and Administration Expenses

Gross margin = Operating Profit

d) Revenue Operating profit = Net Income Before Taxes

e) Revenue FC = VC

f) Revenue VC = Total Contribution. Total Contribution Fixed Costs = Operating Profit