1. Which of the following is correct about a companys contribution margin ratio? a) The...
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Accounting
1. Which of the following is correct about a companys contribution margin ratio?
a) The smaller the ratio, the smaller the total level of sales required to cover fixed expenses.
b) Two companies with the same margin of safety in dollars will always have the same contribution margin ratio.
c) The contribution margin decreases if the variable expense per unit decreases if all other factors remain unchanged.
d) In two companies making the same product with the same sales and total expenses, the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure.
2. In process costing, a separate work-in-process (WIP) account is kept for each:
