It is a common practice to amortize organizational costs over a period of five to ten years

Which of the following is an advantage of developing a predetermined overhead application rate?

A. Long-run fluctuations in volume of output are eliminated. B. In a job order system, unit costs can be determined only at the end of the period. C. The overhead application rate facilitates assigning overhead costs to the ending inventory of work in process. D. Actual overhead will always be less than applied overhead.

If the selling price and the variable cost per unit both increase 10 percent and fixed costs do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?

a. Contribution margin per unit and the contribution margin ratio both remain unchanged. b. Contribution margin per unit and the contribution margin ratio both increase. c. Contribution margin per unit increases and the contribution margin ratio decreases. d. Contribution margin per unit increases and the contribution ratio remains unchanged.