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1. Cost behavior analysis focuses on how costs a. react to changes in profit. b....

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Accounting

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1. Cost behavior analysis focuses on how costs a. react to changes in profit. b. react to changes in activity level. c. change over time. @both a and c. 2. Drivers tha t explain changes in costs as factors other than changes in units produced are called a. Functional based cost drivers b. Non-unit-based cost drivers c. Unit-based cost drivers d. None of these 3. Which of the following would be an example of a unit-based cost driver? a, engineering orders b. material moves c. inspection hours d. direct labor hours 4. Rent of $10,000 paid per month for renting a building is an example of a(n): a. fixed cost. b. variable cost. c. opportunity cost. d, marginal cost. 5. When the volume of activity increases within the relevant range, the fixed cost per unit a. decreases at first, then increases. b. remains the same. c. decreases. increases. 6. The range of activity within which a linear cost function is valid is called the a. normal range. b. relevant range. c. activity range. d. none of these

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