Ch 18 Cost Behavior and Cost-Volume-Profit Analysis Smartbook.docx - Ch 18 Cost Behavior and Cost-Volume-Profit Analysis 1 1 Cost-volume-profit analysis

Ch 18 Cost Behavior and Cost-Volume-Profit Analysis Smartbook.docx

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Ch 18: Cost Behavior and Cost-Volume-Profit Analysis 1 1.Cost-volume-profit analysis helps managers predict how changes in ________ and ______levels affect income. 2.Which of the following is the correct statement about fixed costs? 3.A(n) ________ cost changes in proportion to changes in volume of activity 4.A (n) ________ cost includes both fixed and variable components. 5.Acme Manufacturing recently added another shift, which required the company to hire another production supervisor. The supervisor's salary would be considered a: 6.Conventional CVP analysis requires management to classify all costs as either ________ or ______ with respect to production or sales volume. 7.A (n) _______ cost remains unchanged in amount when the volume of activity varies from periodto period within the relevant range. 8.Which of the following is the correct statement about variable costs? 9.Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25 perunit assembled. This is an example of a ______ cost. 10.A _____ cost increases as volume increases but at a nonconstant rate. 11.A cost which reflects a stair-step pattern in costs is called a ______ cost 12.Each of the following are methods used to separate mixed costs into their fixed and variable components except :
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