Question 1

In a contribution margin statement, profit before taxes is calculated by:

Accepted Answer

A)  Subtracting common fixed costs from segment (product) margin. 
B)  Subtracting traceable fixed costs from contribution margin. 
C)  Subtracting variable costs from contribution margin. 
D)  Subtracting contribution margin from Segment (product) margin. 
E)  Subtracting common fixed costs from contribution margin. 
A)  Subtracting common fixed costs from segment (product) margin. 
B)  Subtracting traceable fixed costs from contribution margin. 
C)  Subtracting variable costs from contribution margin. 
D)  Subtracting contribution margin from Segment (product) margin. 
E)  Subtracting common fixed costs from contribution margin.

Question 2

The high-low method avoids the need to classify individual cost items as fixed or variable.

Accepted Answer

A) True 
 B)False

In a contribution margin statement, profit before taxes is calculated by:

The high-low method avoids the need to classify individual cost items as fixed or variable.

Accounting: Information for Decision Making

Identification and Estimating Costs and Benefits

Cost Flows and Cost Terminology

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations: Theory and Applications

Activity-Based Costing and Management

Managing Long-Lived Resources: Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job Costing

Process Costing

Support Activity and Dual Rate Allocations

Filters

Exam 4: Techniques for Estimating Fixed and Variable Costs

In a contribution margin statement, profit before taxes is calculated by:

The high-low method avoids the need to classify individual cost items as fixed or variable.

Accounting: Information for Decision Making

Identification and Estimating Costs and Benefits

Cost Flows and Cost Terminology

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations: Theory and Applications

Activity-Based Costing and Management

Managing Long-Lived Resources: Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job Costing

Process Costing

Support Activity and Dual Rate Allocations

Filters