# Ch 22 CP - ACC 212 Class Probs Ch 22 1. A cost that remains...

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ACC 212 Class Probs – Ch 22 1. A cost that remains the same in total even when volume of activity varies is a: A) Fixed cost. B) Curvilinear cost. C) Variable cost. D) Step-wise variable cost. E) Standard cost. 2. A cost that changes in proportion to changes in volume of activity is a(n): A) Differential cost. B) Fixed cost. C) Incremental cost. D) Variable cost. E) Product cost. 3. A cost that changes with volume, but not at a constant rate, is called a: A) Variable cost. B) Curvilinear cost. C) Step-wise variable cost. D) Fixed cost. E) Differential cost. 4. A cost that remains constant over a limited range of volume, but increases by a lump sum when volume increases beyond a maximum amount, is a(n): A) Step-wise cost. B) Fixed cost. C) Curvilinear cost. D) Incremental cost. E) Opportunity cost. 5. A cost that can be separated into fixed and variable components is called a: A) Mixed cost. B) Step-variable cost. C) Composite cost. D) Curvilinear cost. E) Differential cost. Page 1

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ACC 212 Class Probs – Ch 22 _ 6. Curvilinear costs always increase: A) With decreases in volume. B) In constant proportion to changes in production levels. C) When management performs break-even analysis. D) When volume increases, but not at a constant rate. E) On a per unit basis when volume of activity goes down. 7. Which one of the following statements is not true? A) Total fixed costs remain the same regardless of volume. B) Total variable costs change with volume. C) Total variable costs decrease as the volume increases. D) Fixed costs per unit increase as the volume decreases. E) Variable costs per unit remain the same regardless of the volume. 8. An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned, and the profit to be received is: A) Target income analysis. B) Cost-volume-profit analysis. C) Least-squares regression of costs. D) Variance analysis. E) Process costing. 9. A company's normal operating range, which excludes extremely high and low volumes that are not likely to occur, is called the: A) Margin of safety. B) Contribution range. C) Break-even point. D) Relevant range. E) High-low point. 10. A term describing a firm's normal range of operating activities is: A) Relevant range of operations. B) Break-even level of operations. C) Margin of safety of operations. D) Relevant operating analysis. E) High-low level of operations. Page 2
ACC 212 Class Probs – Ch 22 11. A target income refers to: A) Income at the break-even point. B) Income from the most recent period.

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## Ch 22 CP - ACC 212 Class Probs Ch 22 1. A cost that remains...

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