Unit 5 - Practice for Review

# Unit 5 - Practice for Review - Unit 5 Cost Behavior and...

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Unit 5: Cost Behavior and Cost-Volume-Profit Analysis - Practice for Review Help

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1. Variable costs are costs that vary on a per-unit basis with changes in the activity level. (Points: 1) True False 2. Direct materials and direct labor costs are examples of variable costs of production. (Points: 1) True False 3. Total variable costs change as the level of activity changes. (Points: 1) True False 4. Unit variable cost does not change as the number of units of activity changes. (Points: 1) True False 5. A mixed cost has characteristics of both a variable and a fixed cost. (Points: 1) True False 6. Rental charges of \$40,000 per year plus \$3 for each machine hour over 18,000 hours is an example of a fixed cost. (Points: 1) True False 7. A rental cost of \$20,000 plus \$.70 per machine hour of use is an example of a mixed cost. (Points: 1) True False 8. For purposes of analysis, mixed costs can generally be separated into their variable and fixed components. (Points: 1) True False 9. The contribution margin ratio is the same as the profit-volume ratio. (Points: 1)
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## This note was uploaded on 10/05/2010 for the course ACCOUNTING n/a taught by Professor N/a during the Summer '09 term at Kaplan University.

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Unit 5 - Practice for Review - Unit 5 Cost Behavior and...

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