Sample, Inc

question 33

Multiple Choice

Sample, Inc.determined its unit variable cost increased by 15%.Which one of the following will NOT increase as a direct result?

• A)total costs
• B)total variable costs
• C)contribution margin
• D)the break-even point

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the amount of work done on them.

Materials

Items or substances from which something is made or can be made, often used in the context of production or manufacturing.

FIFO Method

The First-In, First-Out (FIFO) method is an inventory valuation strategy where the oldest inventory items are recorded as sold first.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units, based on the percentage completion of those units.