QUESTION 2 A retail organization pays its employees a commission of 3 percent...
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Accounting
QUESTION 2
A retail organization pays its employees a commission of 3 percent on each sale. What is the proper classification of the cost of sales commissions?
A.
Fixed cost
B.
Mixed cost
C.
Constant cost
D.
Variable cost
QUESTION 3
SolCo manufactures and sells solar water systems. Because of current trends, it expects sales to increase by 20 percent next year. If this expected level of production and sales is within SolCo's relevant range, how should this increase affect next year's total amounts for the following costs? Variable => Fixed => Mixed
A.
no change => no change => increase
B.
decrease => increase => increase
C.
increase => no change => increase
D.
increase => increase => increase
QUESTION 4
C-V-P analysis does not apply to service industries.
True
False.
QUESTION 8
A contribution margin cannot occur until the breakeven point has been surpassed.
True
False
QUESTION 9
A taxi fare with a base price plus a mileage charge would be an example of a
A.
fixed cost.
B.
variable cost.
C.
mixed cost.
D.
standard cost.
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