Which of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O b. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. O c. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety decreases. O d. none of the given answers is false. O e. Margin of safety measures the difference between budgeted revenues and breakeven revenues.

Which of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O b. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. O c. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety decreases. O d. none of the given answers is false. O e. Margin of safety measures the difference between budgeted revenues and breakeven revenues.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 11MC: When should a segment be dropped? A. only when the decrease in total contribution margin is less...

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Which of the following statements about margin of safety is false? O a. If only the fixed costs decrease but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety increases. Ob. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety decreases. O c. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O d. none of the given answers is false. O e. Margin of safety measures the difference between budgeted revenues and breakeven revenues. OUS PAGE NEXT PAGE F9 F10 F4 F5 F7 F3 F1 & @ 23 7 8 A 1 2 4 W E T Y K S DEF 1G yH ĭ J 1. C { V BYN í M
All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease? Select one: O a. None of the given answers. O b. Both unit contribution margin and contribution margin ratio increase. O c. Unit contribution margin decreases and contribution margin ratio decreases. O d. Both unit contribution margin and contribution margin ratio are unchanged. O e. Unit contribution margin increases while contribution margin ratio decreases.
The breakeven point decreases if a. the selling price per unit decreases b. the contribution margin unit increases c. none of the given answers d. the total fixed costs increase e. the variable cost per unit increases
All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: a. None of the given answers. O b. Unit contribution margin decreases while contribution margin ratio increases. OBoth unit contribution margin and contribution margin.ratio are unchanged. Od. Both unit contribution margin and contribution manrgin ratio decrease. O e. Unit contribution margin increases and contribution margin ratio increases,
:The breakeven point increases if the contribution margin per unit increases a O the variable cost per unit decreases .b O none of the given answers .c O the selling price per unit increases d O the total fixed costs decrease .e O
Which of the following is true of the contribution margin ratio? a.If the contribution margin ratio increases, the price must have decreased. b.If the contribution margin ratio increases, the variable cost ratio decreases. c.It is the proportion of each sales dollar available to cover variable costs. d.If the contribution margin ratio increases, more units must be sold to break even. e.It is complementary to the net profit ratio.
The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin per unit decreases c.none of the given answers d. the selling price per unit increases . e. the total fixed costs increase
Which one of the following statements is false? Multiple Choice O O O O Variable costs per unit remain the same regardless of the volume. Fixed costs per unit increase as the volume decreases. Total variable costs decrease as the volume increases. Total fixed costs remain the same regardless of volume within the relevant range. Total variable costs change with volume.
Which of the following statements about margin of safety is false? O a. If only the fixed costs increase but the number of units sold and unit selling price and unit variable cost are all constant, the margin of safety decreases. O b. Margin of safety measures the difference between budgeted revenues and breakeven revenues. none of the given answers is false. O d. If the variable cost per unit decreases but the number of units sold, unit selling price and total fixed cost are all constant, the margin of safety increases. If only the fixed costs decrease but the number of units sold and unit selling price and all constant, the margin of safety decreases.
4. If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in relation to the old variable cost ratio will be a. The same b. Not enough information provided c. Higher d. Higher
Which of the following would not affect the breakeven point? Oa. A change in variable cost per unit Ob. A change in sales price per unit O C.A change in total fixed cost O d. A change in number of units sold
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs are linear b. Sales mix of products sold does not change c. Selling price per unit changes with volume d. Costs can be divided into variable and fixed components e. Fixed cost per unit is not constant