Contribution Analysis
The answers are below:
(1) Boreland should employ which of the following accounting principles?
- (a) Restitution Calibration
- (b) Transactional Analysis
- (c) Constitutional Analysis
- (d) Contribution Analysis
(4) True or False, generally speaking Contribution Analysis identifies overhead costs by accounting for all known fixed, direct and variable costs and then subtracting that amount from revenues.
- (1) D, Contribution Analysis.
- (2) D, All of the above.
- (3) D, All of the above.
- (4) True, although other variations may be employed.
- (a) Number of units sold
- (b) Contribution margin per unit
- (c) Price records
- (d) Variable costs per unit
- (e) All of the above
- (a) Identifying previously unkown costs
- (b) Assisting in categorizing costs
- (c) Guidance in setting a prices for totally new projects
- (d) All of the above
(2) To calculate a products contribution to profits, Boreland will need to assemble which of the following data?
(3) Which of the following are potential benefits Boreland might realize as a result of employing a Contribution Analysis?
