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11. Which of the following describes a variable cost? A) Variable cost are alway

ID: 2348543 • Letter: 1

Question

11. Which of the following describes a variable cost?
A) Variable cost are always indirect costs.
B) Variable costs increase in total when the actual level of activity increases.
C) Variable costs include most personnel costs and depreciation on machinery.
D) Variable costs can always be traced directly to the cost object.

12. Cost-volume-profit analysis is used PRIMARILY by management:
A) as a planning tool.
B) for control purposes.
C) to establish a target net income for next year.
D) to attain extremely accurate financial results.

Explanation / Answer

11. Which of the following describes a variable cost? C) Variable costs include most personnel costs and depreciation on machinery. 12. Cost-volume-profit analysis is used PRIMARILY by management: D) to attain extremely accurate financial results.