1.which one statement is true?
a. one of the lessons learned from activity based costing is that all costs are really a function of volume
b. the primary purpose of the plant wide and department allocation methods is allocating direct costs to specific products
c. a problem with activity-based costing is that it requires more record keeping than other methods
d. direct cost allocations are required for the plant wide and department allocation methods.
2.Winger Corp. sells a product for $5 per unit. The fixed expenses are $200,000 and the unit variable expenses are 60% of the selling price. What sales would be necessary in order for Winger Corp. to realize a profit of $34,000?
A. $700,000
B. $585,000
C. $610,000
D. $420,000
3.What is the break-even in sales dollars?
A. $420,000
B. $660,000
C. $400,000
D. $540,000]
4.The margin of safety as a percentage of sales is closest to:
A. 29%
B. 59%
C. 71%
D. 41%