51.Companies prepare contribution margin reports by market segments and product segments because productscontribute to profitability in various ways.
a.True
b.False
52.Ford’s Expedition sport utility vehicle is its most profitable model. Therefore, Ford need
not
promote its Expeditionmodel anymore.
a.True
b.False
53.The systematic examination of differences between planned and actual contribution margins is termed contributionmargin analysis.
a.True
b.False
54.In contribution margin analysis, the effect of a difference in the number of units sold, assuming no change in unitsales price or cost, is termed the quantity factor.
a.True
b.False
55.In contribution margin analysis, the effect of a difference in the number of units sold, assuming no change in unitsales price or cost, is termed the unit price or unit cost factor.
a.True
b.False
56.In contribution margin analysis, the effect of a difference in unit sales price or unit cost on the number of units soldis termed the unit price or unit cost factor.
a.True
b.False
57.In contribution margin analysis, the effect of a difference in unit sales price or unit cost on the number of units soldis termed the quantity factor.
a.True
b.False
58.In contribution margin analysis, the quantity factor is computed as the difference between actual quantity sold andthe planned quantity sold, multiplied by the planned unit sales price or unit cost.
a.True
b.False
59.In contribution margin analysis, the unit price or unit cost factor is computed as the difference between actualquantity sold and the planned quantity sold, multiplied by the planned unit sales price or unit cost.
a.True
b.False
60.In contribution margin analysis, the unit price or unit cost factor is computed as the difference between the actualunit price or unit cost and the planned unit price or unit cost, multiplied by the actual quantity sold.
a.True
b.False