June_20th_2011

# June_20th_2011 - NAME MATRICULA SECTION 1 The relationship...

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SECTION ____________ MATRICULA_________ 1. The relationship between cost and activity is termed: A. cost estimation. B. cost prediction. C. cost behavior. D. cost analysis. E. cost approximation. 2. Which of the following costs changes in direct proportion to a change in the activity level? A. Variable cost. B. Fixed cost. C. Semivariable cost. D. Step-variable cost. E. Step-fixed cost. 3. Montgomery Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave? A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E 4. What type of cost exhibits the behavior that follows? A. Variable cost. B. Fixed cost. C. Semivariable cost. D. Discretionary fixed cost. E. Step-fixed cost. 5. When graphed, a typical variable cost appears as: A. a horizontal line. B. a vertical line. C. a u-shaped line. D. a diagonal line that slopes downward to the right. E. a diagonal line that slopes upward to the right. 6. A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true? A. The company is studying a variable cost, and total volume has increased. B. The company is studying a variable cost, and total volume has decreased. C. The company is studying a fixed cost, and total volume has increased. D. The company is studying a fixed cost, and total volume has decreased. E. The company is studying a fixed cost, and total volume has remained constant.

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## This note was uploaded on 08/09/2011 for the course ACCOUNTING --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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June_20th_2011 - NAME MATRICULA SECTION 1 The relationship...

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