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