In Contribution Margin Analysis,the Unit Price or Unit Cost Factor

question 65

Multiple Choice

In contribution margin analysis,the unit price or unit cost factor is computed as:

• A) the difference between the actual unit price or unit cost and the planned unit price or cost,multiplied by the planned quantity sold
• B) the difference between the actual unit price or unit cost and the planned unit price or cost,multiplied by the actual quantity sold
• C) the difference between the actual quantity sold and the planned quantity sold,multiplied by the planned unit sales price or unit cost
• D) the difference between the actual quantity sold and the planned quantity sold,multiplied by the actual unit sales price or unit cost

Apply the weighted-average method in process costing to determine equivalent units of production.

Understand and articulate the process of cost reconciliation within a processing department.

Describe the principles of setting a predetermined overhead rate in a job-order costing system.

Distinguish between job-order costing and process costing, and identify which method is appropriate for different industries.

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