Acc 561 Final Exam The Investigation

ACC/561 final exam The investigationThe investigation of materials price variance usually begins in the:​​controller’s office.​accounts payable department.​first production department.​purchasing departmentHollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?​​35%​25%​75%​65%Which of the following statements is not true?​​When a company’s sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.​When a company’s sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly.​Companies that have higher fixed costs relative to variable costs have higher operating leverage.​Operating leverage refers to the extent to which a company’s net income reacts to a given change in sales.Which of the following will not result in an unfavorable controllable margin difference?​​Sales under budget; costs under budget​Sales exceeding budget; costs under budget​Sales under budget; costs over budget<span