Fixed costs are costs that remain the same in total dollaramount as the activity base changes. TRUE ORFalse

A relevant range is the range of activity over which the changesin the cost are of no interest. True orFalse

The break-even point is the level of operations at which thecompany has neither a loss nor a profit. True orFalse

As fixed costs increases, the break-even point increases.True or False

FIFO method refers to the fact that the first items in are thelast items out. True or False

Mixed costs are costs that have characteristics of both avariable and fixed costs. True orFalse

An example of an activity base is units produced.True or False

As the unit selling price increases, the break-even pointincreases. True or False

The difference between contribution margin and operatingleverage is fixed charges. True orFalse

Question

Fixed costs are costs that remain the same in total dollaramount as the activity base changes. TRUE ORFalse

A relevant range is the range of activity over which the changesin the cost are of no interest. True orFalse

The break-even point is the level of operations at which thecompany has neither a loss nor a profit. True orFalse

As fixed costs increases, the break-even point increases.True or False

FIFO method refers to the fact that the first items in are thelast items out. True or False

Mixed costs are costs that have characteristics of both avariable and fixed costs. True orFalse

An example of an activity base is units produced.True or False

As the unit selling price increases, the break-even pointincreases. True or False

The difference between contribution margin and operatingleverage is fixed charges. True orFalse

The amount of revenue remaining after deducting variablecosts.
Costs that contain both a variable and a fixed element.
The percentage of sales dollars available to cover fixed costsand produce income.
Identifies the activity which causes changes in the behavior ofcosts.
The difference between actual or expected sales and sales atthe break-even point.
Costs that vary in total directly and proportionately withchanges in the activity level.
The level of activity at which total revenues equal totalcosts.
The range over which the company expects to operate during theyear.
Costs that remain the same in total regardless of changes inthe activity level.
A costing approach in which all manufacturing costs are chargedto the product.
A method that uses the total costs incurred at the high and lowlevels of activity.
A costing approach in which only variable manufacturing costsare product costs and fixed manufacturing costs are period costs(expenses).

The amount of revenue remaining after deducting variablecosts.
Costs that contain both a variable and a fixed element.
The percentage of sales dollars available to cover fixed costsand produce income.
Identifies the activity which causes changes in the behavior ofcosts.
The difference between actual or expected sales and sales atthe break-even point.
Costs that vary in total directly and proportionately withchanges in the activity level.
The level of activity at which total revenues equal totalcosts.
The range over which the company expects to operate during theyear.
Costs that remain the same in total regardless of changes inthe activity level.
A costing approach in which all manufacturing costs are chargedto the product.
A method that uses the total costs incurred at the high and lowlevels of activity.
A costing approach in which only variable manufacturing costsare product costs and fixed manufacturing costs are period costs(expenses).

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