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ACC 206 ACC206 Week 3 Power Point Quiz Chapter 5 with Answers

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ACC 206 Week 3 Power Point Quiz Chapter 5 Answers

Utilizing the high-low method of estimating fixed and variable components of cost, the variable portion is divided by the difference in activity/consumption between the high and low cost levels to find the variable cost per unit. (Points : 1)

Question 2. 2. When performing a CVP analysis the Margin of Safety is the amount by which the sales exceed the break-even sales level. (Points : 1)

Question 3. 3. Under CVP & Absorption Cost one of the primary assumptions is that the firm is not a nonprofit organization. (Points : 1)

Question 4. 4. Variable (direct) costing is approved for use by public corporations under GAAP. (Points : 1)

Question 5. 5. When comparing absorption costing to variable costing the only difference is in the handling of fixed manufacturing overhead. (Points : 1)

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