CVP Analysis Using Activity-Based Costs Will Tend to Shift Cost

question 21

Multiple Choice

CVP analysis using activity-based costs will tend to shift cost from fixed to variable classifications,resulting in:

• A)Lower breakeven sales.
• B)Higher breakeven sales.
• C)Breakeven sales can be higher or lower,depending on batch size.
• D)A higher contribution margin per unit.
• E)A lower contribution margin per unit.

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