ACCT 2302 Ch 18 Cost Behavior and Cost-Volume-Profit Analysis Smartbook.

Ch 18: Cost Behavior and Cost-Volume-Profit Analysis 1 1. Cost-volume-profit analysis helps managers predict how changes in ________ and ______levels affect income. Costs; sales 2. Which of the following is the correct statement about fixed costs? The fixed cost per unit will decrease when volume increases. 3. A(n) ________ cost changes in proportion to changes in volume of activity Variable 4. A (n) ________ cost includes both fixed and variable components. Mixed 5. Acme Manufacturing recently added another shift, which required the company to hire another production supervisor. The supervisor's salary would be considered a: Step-wise cost 6. Conventional CVP analysis requires management to classify all costs as either ________ or ______ with respect to production or sales volume. Fixed; variable 7. A (n) _______ cost remains unchanged in amount when the volume of activity varies from period to period within the relevant range. Fixed 8. Which of the following is the correct statement about variable costs? The variable cost per unit does not change when volume changes. 9. Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25 per unit assembled. This is an example of a ______ cost. Mixed 10. A _____ cost increases as volume increases but at a nonconstant rate. Curvilinear 11. A cost which reflects a stair-step pattern in cost