1.Given that the total revenue is $25,000 and the throughput contribution amounts to $12,000, what is the direct material cost included in the cost of goods sold?
2.When capacity utilization and its associated costs remain constant in product costing, the capacity management applies to the __________ period?
3.Given that the contribution margin per unit is $5,000, the selling price per unit is $1,500, and the variable manufacturing cost per unit is $1,200, what is the per unit marketing cost?
4.Under variable costing, how is operating income affected when inventory levels decline?
5.Given a total budgeted fixed cost of $26,000 and a budgeted production volume of 1,300 units, what is the fixed cost allocated per unit?
6.In absorption costing, which factor influences the size of a favorable production volume variance?
7.Which of the following can decrease the numerator in the fixed manufacturing overhead rate calculation?
8.Given a contribution margin of $16,700 per unit and an increase in units sold by 20, what is the resulting change in operating income under variable costing?
9.To determine which value is obtained by adding the throughput contribution to the direct material cost of goods sold?
10.Given that the cost of direct materials for goods sold is $4,500 and total sales revenue amounts to $9,000, what is the contribution margin?
11.In accounting, what does the term 'capacity' typically signify?
12.What term describes the gap between the master budget capacity and the practical capacity?
13.Given a budgeted fixed cost of $48,000 and a budgeted denominator level of 1,200 units, what is the budgeted fixed cost per unit?
14.Given that the change in operating income under variable costing is $9,000 and the contribution margin per unit is $6,000, what is the change in the number of units sold?
15.Which term describes a company's operational capacity that excludes downtime and interruptions?
16.Under absorption costing, what is true about the production volume variance?
17.The theoretical capacity of an organization is based on the ideal level of which type of utilization?
18.Which type of capacity is regarded as the most reliable indicator of capacity utilization?
19.Which type of variance is accounted for in absorption costing but excluded from variable costing?
20.In production firms, the variable costing approach is commonly known as _________?