The contribution margin ratio always increases when the
a. variable costs as a percentage of net sales increase.
b. variable costs as a percentage of net sales decrease.
c. break-even point increases.
d. break-even point decreases.
B
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Which of the following statements is correct regarding fringe benefits earned by employees whose regular wages are normally classified as direct labor?
A) Fringe benefits should also be classified as direct labor. B) Fringe benefits should be classified as indirect labor. C) Fringe benefits should be classified as a period cost. D) Fringe benefits should not be classified as either a product or period cost.
Place the following creditors on one residential property in order of priority. January 1, 2014 - Initial mortgage (recorded) March 1, 2014 - Second mortgage for swimming pool (recorded) June 1, 2014 - PMSI security interest in new air conditioner that is installed on the property September 1, 2015 - Sears kitchen remodeling with new built-in appliances (PMSI recorded)