Accounting Help - Practice Questions

Chapter 18: Practice questions

1-1 The total manufacturing cost per unit increases as total production volume increases.

1-2 Total variable costs change in response to changes in the volume of production.

1-3 The mixed cost per unit is constant throughout the relevant range of activity.

1-4 Fixed costs per unit decrease as production levels decrease.

1-5 A method used to separate mixed costs into fixed and variable components is called the high-low method.

1-6 The variable cost per unit is assumed to be constant within a particular relevant range of activity.

1-7 Which of the following costs changes in direct proportion to a change in volume? A) Average mixed cost B) Total fixed cost C) Average variable cost D) Total variable cost

1-8 Which of the following is not a fixed cost? A) Property taxes B) Salary of plant manager C) Indirect materials D) Straight-line depreciation

1-9 A 15% increase in production will result in: A) a 15% increase in the variable cost per unit. B) a 15% increase in total mixed costs. C) a 15% increase in total manufacturing costs. D) a 15% increase in total variable costs.

1-10 Which of the following statements is correct with respect to variable cost per unit, within the relevant range? A) They will increase as production decreases. B) They will decrease as production decreases. C) They will remain the same as production levels change. D) They will decrease as production increases.

1-11 Which of the following statements is correct with respect to total variable costs, within the relevant range? A) They will decrease as production increases. B) They will remain the same as production levels change. C) They will decrease as production decreases. D) They