41.Direct labor cost is an example of a controllable cost for the supervisor of a manufacturing department.
a.True
b.False
42.In the short run, the selling price of a product should normally
not
be less than the variable costs and expenses ofmaking and selling it.
a.True
b.False
43.In the long run, for a business to remain in operation, the revenues from products sold should normally cover allcosts and expenses and provide a reasonable income.
a.True
b.False
44.For short-run production planning, information in the absorption costing format is more useful to management than isinformation in the variable costing format.
a.True
b.False
45.For short-run production planning, information in the variable costing format is more useful to management than isinformation in the absorption costing concept format.
a.True
b.False
46.Sales mix is generally defined as the relative distribution of sales among the various products sold.
a.True
b.False
47.If the ability to sell and the amount of production facilities devoted to each of two products is equal, it is profitable toincrease the sales of that product with the lowest contribution margin.
a.True
b.False
48.If the ability to sell and the amount of production facilities devoted to each of two products is equal, it is profitable toincrease the sales of that product with the highest contribution margin.
a.True
b.False
49.The contribution margin ratio is computed as contribution margin divided by sales.
a.True
b.False
50.In evaluating the performance of salespersons, the salesperson with the highest level of sales should be evaluatedas the best performer.
a.True
b.False