Acct examm 2
The level of activity over which cost behavior assumptions are true is known as the
True
A shift from product costing to a focus on cost ________ is the key to making most managerial decisions.
behavior
How total costs changes as some level of activity changes is called cost ______.
behavior
A fixed cost, such as a long-term lease, that is difficult for a manager to change in the short-run is called a(n)_______fixed cost
committed
A fixed cost that is relatively easy for a manager to change in the short-run, such as travel or advertising, is called a(n)____________fixed cost.
discretionary
A fixed cost remains fixed ______ within the relevant range of activity.
in total
Fixed costs should not be expressed on a per -unit basis because ______.
it may make managers believe they can reduce costs by producing more
Cost assumptions are reasonably valid within the
relevant range
Variable costs ______.
remain constant per unit and vary in total
Within the relevant range of activity, variable costs ______.
vary in total remain constant per unit