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

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Definitions:

Units-of-Production Method

A depreciation method where the expense is based on the asset's usage, output, or units produced, rather than time.

Straight-Line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Capital Lease

A lease agreement that is recorded as an asset on a lessee's balance sheet, signifying that the lessee has substantially all the risks and rewards of ownership.

Delivery Truck

A vehicle designed for transporting goods from one location to another.