Major error(s) that must be avoided when using fixed cost information to make decisions are:
A) Using fixed costs per unit derived at all levels to forecast costs
B) Assuming that cost per unit does not change when volume changes
C) Both a & b
D) None of the above
Correct Answer:
Verified
Q1: Total Revenues can be calculated using the
Q3: Relevant range is the range of activity
Q4: Break-even point is where total revenues equal
Q5: Total contribution margin is total revenues -
Q6: Common costs benefit_.
A) Everyone in an organization
B)
Q7: Product margin = total contribution margin -
Q8: Per unit contribution margin= per unit revenues
Q9: Controlling costs or decreasing profit margins to
Q10: Additional costs incurred solely as a result
Q11: Incremental costs are always unforeseen.
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