When using a contribution margin format for internal reporting purposes, the major distinction between segment manager performance and segment performance is: A direct variable cost of selling the product. B direct fixed cost controllable by others. C unallocated fixed cost. D New direct fixed cost controllable by the segment manager

Which format of the Income Statement is appropriate for financial reporting? O Variable costing O Activity-based O Absorption O any format is fine for financial reporting

On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any activity level above the break-even point. FALSE O TRUE

1. What is a segment of an organization? Give a few examples of segments of Walmart Corporation. 2. What costs are assigned to a segment under the contribution approach? 3. Distinguish between a traceable fixed cost and a common fixed cost. 4. Explain how the contribution margin is different from the segment margin. 5. Why aren't common fixed costs allocated to segments under the contribution approach?

Which type of income statements, Contribution Format or Traditional Format should be used to identify relevant costs? Please provide explanation for your answer. Then provide an example including two income statements based on absorption and variable costing, respectively, to support your explanation.

Variable costing income will be greater than absorption costing income when:   a. Sales is greater than production.   b. contribution pricing is applied   c. Production is less than or equal to sales.   d. Production is greater than sales

Profitability changes may be simply calculated by using what kind of tool: sales price/volume/variable costs/fixed costs.

When using the general methods to estimate cost behavior,  A. It is a good idea to use multiple methods so results can be compared B. Managers often apply their own best judgement as a first step in the estimation process C. Results are likely to differ from method to method D. Large differences in methods suggest that the cost cannot be estimated.

What is  the difference between variable costing and absorption costing income statements? a.      Provide a hypothetical income statement in both formats in which the number of units sold is different from the number of units manufactured. b.     Explain the contrast between the two formats.

The decision of whether to process products beyond the splitoff process should be based on which of the following?   Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis