For which of the following is a profit centre manager normally responsible?
A. Costs only
B. Revenues only
Costs and revenues only
D. Costs, revenues and investment
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A business has estimated its budgeted overheads and levels of activity as follows:From the information given, what should be the basis for overhead absorption?Production department 1
A. Machine hours
B. Labour hours
Production department 2
A. Machine hours
B. Labour hours
Which TWO of the following are characteristics of service costing?
A. Consistency of each instance of service
B. High proportion of indirect costs to total costs
C. Use of equivalent units
D. Cost units are often intangible
A firm has decided to increase the selling price per unit of its product by $1.If nothing else changes what is the effect of this on the margin of safety and break-even point?
A. The margin of safety will decrease and the break-even point will increase
B. The margin of safety will increase and the break-even point will increase
C. The margin of safety will decrease and the break-even point will decrease
D. The margin of safety will increase and the break-even point will decrease
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