Chapter 22 accounting example #74802

Cost behavior analysis is a study of how a firm's costs....

An assumption of CVP analysis is that all costs can be classified as either variable or fixed. True or False?

If a firm increases its activity level...

A fixed cost is a cost which (total activity)

A variable cost is a cost that (level of activity)

A cost which remains constant per unit at various levels of activity is a

A fixed cost remains constant in total and on a per unit basis at various levels of activity. True or False?

Changes in activity have a(n)______effect on fixed costs per units

For CVP analysis, both variable and fixed costs are assumed to have a linear relationship within the relevant range of activity. True or false?

A mixed cost contains

A CVP income statement shows contribution margin instead of gross profit. True or False?

Contribution margin equals...

Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed costs and to income. True or False?

The break-even point is where...

The high low method is often employed in analyzing...

The high-low method is criticized because it...

In using the high-low method, the fixed cost...

The amount by which actual or expected sales exceeds break-even sales is referred to as

The margin of safety ratio is computed by dividing