Question

Where is the break-even point located in a CVP graph?

	a.	At the intersection of the variable cost line and the fixed cost line.
	b.	At the intersection of the mixed cost line and the sales line.
	c.	At the intersection of the sales line and the fixed cost line.
	d.	At the intersection of the total cost line and the sales line.

When using the weighted-average method, equivalent units are

	a.	the number of units produced in a period less the number of units in process at the end of the period.
	b.	the number of units completed in a period.
	c.	the number of units completed in a period plus the number of units in process at the end of the period multiplied by the percentage of which the units have been completed.
	d.	the number of units in beginning inventory plus the number of units completed in a period.

he break-even point

	a.	is the point at which total sales equal total variable costs.
	b.	is the point at which total revenue equals total fixed costs plus total variable costs.
	c.	is the point at which total sales equals total contribution margin.
	d.	is the point at which total sales equal total fixed costs.

In process costing,

	a.	total costs are determinable at any point in time by examining the account balances.
	b.	the system is used to apply costs to merchandise inventory.
	c.	costs are summarized in a product cost report by department.
	d.	accounting focuses on the process involved in manufacturing products that are very unique in nature.

Which of the following is true of a process cost system?

	a.	There is a separate Work in Process account for each process.
	b.	Materials are added at the beginning process, and conversion costs are added at the end.
	c.	There is a separate Work in Process account for each product.
	d.	A subsidiary ledger tracks the costs of each job.

How is the cost of goods manufactured calculated?

	a.	direct materials used + direct labour + manufacturing overhead – beginning WIP + ending WIP
	b.	beginning WIP + direct materials used + direct labour + manufacturing overhead + ending WIP
	c.	direct materials used + direct labour + manufacturing overhead – ending WIP – beginning WIP
	d.	beginning WIP + direct materials used + direct labour + manufacturing overhead – ending WIP

Answer 1