accounting 212 chapter 5.1

d

15) Which of the following is not an example of a fixed cost? 15) ______ A) factory insurance cost B) depreciation on a factory building C) monthly store rent D) All of these answers are examples of fixed costs.

c

16) An example of a fixed cost related to delivery activity is: 16) ______ A) rent on a factory building B) the salary of the vice president of sales C) vehicle insurance D) depreciation on a factory building

b

1) The reaction of costs to changes in levels of business activity is called: 1) _______ A) semi-variable cost tracking B) cost behavior C) managerial decision behavior D) marketing mix

a

10) The type of cost that stays the same on a per unit basis as business activity levels change is a: 10) ______ A) variable cost B) mixed cost C) fixed cost D) parallel cost

a

11) Variable costs are costs that __________ in total, but __________ as the business activity level changes. 11) ______ A) change ; remain constant per unit B) remain constant; change per unit C) change; change per unit D) remain constant; remain constant per unit

c

12) One cost does not change per unit as business activity changes. This is an example of a: 12) ______ A) fixed cost B) mixed cost C) variable cost D) All costs change on a per unit basis as business activity changes.

b

13) A cost that changes in total proportionately with changes in the level of activity is a: 13) ______ A) period cost B) variable cost C) fixed cost D) mixed cost 14) The behavior of a variable cost is the opposite of the behavior of a: 14) ______ A) period cost B) mixed cost C) fixed cost D) liquid cost

c

14) The behavior of a variable cost is the opposite of the behavior of a: 14) ______ A) period cost B) mixed cost C) fixed cost D) liquid cost

d

17) An example of a fixed cost related to sales activity is: 17) ______ A) depreciation on production equipment B) rent on a factory building C) vehicle insurance D) the salary of the vice president of sales

d

18) Which of the following is not an example of a variable cost? 18) ______ A) Gasoline for delivery vehicles B) Direct labor C) Direct material D) All of these answers are examples of variable costs.

d

19) Which of the following is an example of a variable cost related to sales activity? 19) ______ A) monthly retail store rent B) sales salaries C) direct material D) sales commissions

a

2) Increases and decreases in any business activity: 2) _______ A) will impact some costs and not others B) will impact only fixed costs C) generally have no impact on cost D) will impact all costs

d

20) Which of the following is an example of a variable cost related to delivery activity? 20) ______ A) depreciation on delivery vehicles B) delivery vehicle insurance cost C) factory rent D) gasoline

b

3) In cost and management accounting, the term "business activity" means: 3) _______ A) activities which only impact a company's management accounting B) almost anything happening in a business C) activities which only generate revenue for a company D) None of these answers is correct.

c

4) Costs that remain the same in total regardless of the level of business activity are called: 4) _______ A) variable costs B) frozen costs C) fixed costs D) sunk costs

d

5) A cost that does not change as the level of business activity changes is a: 5) _______ A) variable cost B) semi-variable cost C) mixed cost D) fixed cost

c

6) A cost that changes on a per unit basis as the activity level changes is a: 6) _______ A) None of these answers is correct B) behavioral cost C) fixed cost D) variable cost

c

7) Fixed costs are costs that __________ in total, but __________ as the business activity level changes. 7) _______ A) fluctuate; are relatively stable B) change; remain fixed per unit C) remain constant; change per unit D) None of these answers is correct.

a

8) A cost that decreases per unit as business activity increases is a: 8) _______ A) fixed cost B) behavioral cost C) variable cost D) product cost

d

9) __________ costs change in total proportionately with changes in the level of business activity. 9) _______ A) Frozen B) Fixed C) Mixed D) Variable