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1. Which of the following is a disadvantage of the Variable costing method? A. The data available does not easily relate to CVP[Cost-volume-profit] applications. B. The data is not applicable to short-term decision-making situations. C. Much time and effort must be expended to allocate fixed costs to various segments. D. It cannot be used for external reporting purposes. E. All of the above are disadvantages of variable costing. 2. X Corp. has 3 sales regions : West, Midwest and East. Which of the following is an example of a Direct (Traceable) Fixed Cost when segments are defined by sales region? A. Salaries paid to sales employees in each region. B. The salary of the corporate president. C. Depreciation on the corporate office facility. D. Rental cost for the factory facility. E. Advertising to promote a positive corporate image. 3. X Corp. is planning to sell 200K units of product Z at $20 per unit. This product has a 25%CM ratio. Assume the company expects to break-even at this level of sales. What is the amount of fixed cost involved? Show all Calculations. 4. Y Corp. sells product A for $60 per unit. Variable costs are $40 per unit and fixed costs are $200K. Compute the sales revenue needed [in both units and dollars] to generate NOI of \$40K

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