ANS T DIF Easy OBJ 194 01 NAT AACSB Analytic IMA Performance Measurement 9 The

Ans t dif easy obj 194 01 nat aacsb analytic ima

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ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement9.The range of activity over which changes in cost are of interest to management is called the relevant range.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement10.Total fixed costs change as the level of activity changes.ANS:FDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement11.Because variable costs are assumed to change in constant proportion with changes in the activity level, the graph of the variable costs when plotted against the activity level appears as a circle.ANS:FDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement12.Variable costs are costs that remain constant in total dollar amount as the level of activity changes.ANS:FDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement13.Variable costs are costs that remain constant on a per-unit basis as the level of activity changes.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement14.Variable costs are costs that vary in total in direct proportion to changes in the activity level.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement15.Variable costs are costs that vary on a per-unit basis with changes in the activity level.ANS:FDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement16.Direct materials and direct labor costs are examples of variable costs of production.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement
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Chapter 19(4) /Cost Behavior and Cost-Volume-Profit Analysis 12017.Total variable costs change as the level of activity changes.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement18.Unit variable cost does not change as the number of units of activity changes.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement19.A mixed cost has characteristics of both a variable and a fixed cost.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement20.Rental charges of $40,000 per year plus $3 for each machine hour over 18,000 hours is an example of a fixed cost.ANS:FDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement21.A rental cost of $20,000 plus $.70 per machine hour of use is an example of a mixed cost.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement22.For purposes of analysis, mixed costs can generally be separated into their variable and fixed components.ANS:TDIF:EasyOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement23.The contribution margin ratio is the same as the profit-volume ratio.ANS:TDIF:EasyOBJ:19(4)-02NAT:AACSB Analytic | IMA-Performance Measurement24.Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio.
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