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TRUE/FALSE. Write 'T' If The Statement Is True and 'F' If The Statement Is False

This document contains a true/false exam with questions about cost-volume-profit analysis and break-even point calculations. It tests the examinee's understanding of key concepts such as separating fixed and variable costs, the definition of contribution margin, calculating operating income using CVP principles, and the effects of changes in price, costs and sales on break-even point. The document provides the questions and a space for the examinee to write their answers of true or false.

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Sophie Sheibani
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© Attribution Non-Commercial (BY-NC)
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Download as RTF, PDF, TXT or read online on Scribd
181 views

TRUE/FALSE. Write 'T' If The Statement Is True and 'F' If The Statement Is False

This document contains a true/false exam with questions about cost-volume-profit analysis and break-even point calculations. It tests the examinee's understanding of key concepts such as separating fixed and variable costs, the definition of contribution margin, calculating operating income using CVP principles, and the effects of changes in price, costs and sales on break-even point. The document provides the questions and a space for the examinee to write their answers of true or false.

Uploaded by

Sophie Sheibani
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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Exam

Name___________________________________

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1)
To
perform
cost-
volume-
profit
analysis,
a
company
must be
able to
separate
costs into
fixed and
variable
componen
ts.
1) _______

2)
In CVP
analysis,
variable
costs
include
direct
variable
costs, but
do not
include
indirect
variable
costs.
2) _______

3)
If the
selling
price per
unit is $20
and the
contributi
on margin
percentag
e is 30%,
then the
variable
cost per
unit must
be $6.
3) _______

4)
Total
revenues
less total
fixed
costs
equal the
contributi
on
margin.
4) _______

5)
Gross
margin is
reported
on the
contributi
on income
statement
.
5) _______

6)
If the
selling
price per
unit of a
product is
$30,
variable
costs per
unit are
$20, and
total fixed
costs are
$10,000
and a
company
sells
5,000
units,
operating
income
would be
$40,000.
6) _______

7)
The
selling
price per
unit is
$30,
variable
cost per
unit $20,
and fixed
cost per
unit is $3.
When this
company
operates
above the
breakeve
n point,
the sale of
one more
unit will
increase
net
income by
$7.
7) _______

8)
A
company
with sales
of
$100,000,
variable
costs of
$70,000,
and fixed
costs of
$50,000
will reach
its
breakeve
n point if
sales are
increased
by
$20,000.
8) _______

9)
Breakeve
n point is
that
quantity
of output
where
total
revenues
equal
total
costs.
9) _______

10)
If the
selling
price per
unit of a
product is
$50,
variable
costs per
unit are
$40, and
total fixed
costs are
$50,000,
a
company
must sell
6,000
units to
make a
target
operating
income of
$10,000.
10) ______

11)
If variable
costs per
unit
increase,
then the
breakeve
n point
will
decrease.
11) ______
TRU E FAL SE
1 2) 3)
)
FALS E
5)
TRUE
6)
TRUE
7)
FALS E
8)
FALS E
9)
TRUE
10)
TRUE
11)
FALS
E

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