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Unformatted text preview: Chapter 5 Practice Test Acctg 203 1. At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600. Using the high-low method, the cost formula for maintenance is: A) $600 plus $1.10 per unit. B) $1.20 per unit. C) $1,200 plus $1.10 per unit. D) $1.16 per unit. 2. Which costs will change with a decrease in activity within the relevant range? A) Unit fixed cost and total fixed cost. B) Unit variable cost and unit fixed cost. C) Total fixed costs and total variable cost. D) Unit fixed costs and total variable cost. Use the following to answer questions 3-4: Rymore Company would like to classify the following costs according to their cost behavior: July August Sales in units 1,500 1,600 Cost A $35,000 $36,000 Cost B 16,000 16,000 Cost C 67,500 72,000 3. Which of the following classifications best describes the behavior of Cost C?...
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This note was uploaded on 02/14/2010 for the course ACCT 203 taught by Professor King during the Winter '09 term at Shoreline.
- Winter '09