1. Which of the following changes would cause a company's break-even point in sales to increase?
The company's contribution-margin rate increases.
The company's variable cost per unit decreases.
The company's total fixed costs increases.
The company's selling price per unit increases.
2. A bank believes it has sufficient controls to ensure good reporting, except that an executive is able to deliberately misrepresent records to a bank regulator. Which of the following internal control limitations is likely?
Costs versus benefits
Management override.
Gameplay.
Omitted variables.