ACCT 202 Ch 18 Cost Behavior & CVP Analysis

Front

Total variable costs change in proportion to changes in volume of activity.

Back

True

Front

Total fixed costs change in proportion to changes in volume of activity.

Back

False

Front

Variable cost per unit increases proportionately with increases in volume of activity.

Back

False

Front

Fixed cost per unit of output decreases as volume increases.

Back

True

Front

Variable cost per unit stays the same as volume changes.

Back

True

Front

Relevant range is the normal operating range for a business.

Back

True

Front

CVP analysis can predict how changes in costs and sales affect profit.

Back

True

Front

If sales = $10,000, variable = $6,000, and income = $800, fixed costs = $4,000. Is this statement true or false?

Back

False

Front

Contribution margin per unit = selling price − variable cost.

Back

True

Front

Break-even occurs when total sales equal total costs.

Back

True