PART I.Write the word "TRUE" If the statement is correct and write the word statement is not correct I Variable Costis a cost that changes in direct proportion to changes in the cost drive 2 Contri bution margin is the difference of sales revenue and al variable costs 3 BEP is determined by the intersectio n of the tota revenue line and the total expense line. 4 Margin of Safety (MOS) is planned sales minu s BEP unit sales Breakever point is the level of out put where tota revenues equal tota costs II Matching A 6) master budget A) Flexible budget 7) Permanent cost B) overall budget 8) above BEP C) profit D) Fixed Cost PARTIL CHOOSETHEBEST ANSWER FROM THE GIVEN ALLTERNA TIVE MUI TIPLE CHOICE is: is or le of the most powert ul tools that managers have at the command A True B/ False C/Both D/ All 10) All costs are considered relevant,except A sunk cost B/fixed cost C/ variable cost D/all 10) particular decisior situation the manager's approach to cost analysis are A Eliminate sunk cost B material cost C. labor cost D/ All in Steps in the Decision Making Process are A Design orgal nization B specify the criterionC A and B D/ All 12) is examining shifts in costs and volume and their resulting effects on profit A' CVP B'CM CI BEP D/ALL PAR TIV:SHORT ANSWER 131 How CVP Analysis:is one of the most powerfu tools that managers have at their comma __ a

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PART I.Write the word "TRUE" If the statement is correct and write the word statement is not correct I Variable Costis a cost that changes in direct proportion to changes in the cost drive 2 Contri bution margin is the difference of sales revenue and al variable costs 3 BEP is determined by the intersectio n of the tota revenue line and the total expense line. 4 Margin of Safety (MOS) is planned sales minu s BEP unit sales Breakever point is the level of out put where tota revenues equal tota costs II Matching A 6) master budget A) Flexible budget 7) Permanent cost B) overall budget 8) above BEP C) profit D) Fixed Cost PARTIL CHOOSETHEBEST ANSWER FROM THE GIVEN ALLTERNA TIVE MUI TIPLE CHOICE is: is or le of the most powert ul tools that managers have at the command A True B/ False C/Both D/ All 10) All costs are considered relevant,except A sunk cost B/fixed cost C/ variable cost D/all 10) particular decisior situation the manager's approach to cost analysis are A Eliminate sunk cost B material cost C. labor cost D/ All in Steps in the Decision Making Process are A Design orgal nization B specify the criterionC A and B D/ All 12) is examining shifts in costs and volume and their resulting effects on profit A' CVP B'CM CI BEP D/ALL PAR TIV:SHORT ANSWER 131 How CVP Analysis:is one of the most powerfu tools that managers have at their comma __ a

Answer 1

PART I: 1. TRUE 2. TRUE 3. TRUE 4. TRUE 5. TRUE PART II: 6. B) overall budget 7. A) Flexible budget 8. C) profit PART III: 9. B) False 10. A) sunk cost 11. B) material cost 12. D) All 13. C) CVP PART IV: 14. CVP Analysis is one of the most powerful tools that managers have at their command because it helps in understanding the relationship between costs, volume, and profit. It allows managers to make informed decisions regarding pricing, product mix, and cost control.

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