0. The manner in which a cost changes as a related activity changes is known as

Question

0. The manner in which a cost changes as a related activity changes is known as  ...............................................................................................   


1. Direct materials and direct labor are generally classified as a (fixed or variable) cost  .........................................................................................  

2. The activity that is thought to cause a cost to be incurred is referred to as the  .....................................................................................................  

3. The wages of a production worker is an example of a (fixed or variable) cost.  ........................................................................................  

4. The rental cost of a piece of office equipment at $10,000 per month plus $6.23 for each machine hour used over 1,720 hours is an example of a(n) _________ cost.  ..........................................................  
   

5. In the high-low method, the difference in total cost divided by the difference in production results is  ..........................................................  

6. Increases in unit variable cost will cause the break-even point to  .........   

7. Decreases in property tax expense will cause the break-even point to  .

8. Sales less variable costs divided by sales is the calculation of the  ........  

9. Decreases in the unit selling price will cause the break-even point to  ...

10. The vertical axis of a break-even chart depicts  .....................................

11. With the aid of computer software, managers can vary assumed selling prices, costs, and volume and can immediately see the effects on the break-even point. Such an analysis is called  ..............................

12. The sales volume necessary to break-even or to earn a target profit for a business selling two or more products depends upon the  ..................

13. Contribution margin divided by operating income is used in the calculation of  ..........................................................................................

14. The difference between the current sales revenue and the sales at the break-even point is referred to as  ..........................................................

15. An important assumption of cost-volume-profit analysis is that total sales and total costs can be represented by  ..........................................     

Explanation / Answer

The manner in which a cost changes as a related activity changes is known as Cost behavior

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Direct materials and direct labor are generally classified as a fixed cost

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The wages of a production worker is an example of a Variable cost.

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The rental cost of a piece of office equipment at $10,000 per month plus $6.23 for each machine hour used over 1,720 hours is an example of aVariable cost.

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