51.Contribution margin is the excess of sales over total variable costs. 52.Variable costing is the only acceptable basis for both external reporting and tax reporting. 53.The bottom line of a...

51.Contribution margin is the excess of sales over total variable costs.

52.Variable costing is the only acceptable basis for both external reporting and tax reporting.

53.The bottom line of a contribution margin report is net income.

54.Contribution margin divided by sales equals contribution margin ratio.

55.Contribution margin ratio is the percent of each sales dollar used to cover variable costs.

56.Multiplying the contribution margin ratio by the expected change in sales equals the expected change in contribution margin.

57.Information presented in a variable costing format can assist management when making short-term pricing decisions.

58.It is not possible to convert reports prepared using variable costing to absorption costing reports.

59.To convert variable costing income to absorption costing income, management will need to change the way fixed overhead costs are treated.