1. Amounts spent for charitable contributions are an example of a (n):

1. Committed fixed cost
2. Committed variable cost
3. Discretionary fixed cost
4. Discretionary variable cost
5. Engineered cost

2. Cost that has both a fixed and variable component is known as a:

1. Step fixed cost
2. Step Variable cost
3. Semi variable cost
4. Curvilinear cost
5. Discretionary cost

3. The break-even point is that level of activity where

1. Total revenue equals total cost
2. Variable cost equals fixed cost
3. Total contribution margin equals the sum of variable cost-plus fixed cost
4. Sales revenue equals total variable cost
5. Profit is greater than zero

4. Which of the following would product the largest increase in the contribution margin per unit?

1. A 7% increase in selling price
2. A 15% decrease in selling price
3. A 14% increase in variable cost
4. A 17% decrease in fixed cost
5. A 23% increase in the number of units sold

5.

The extent to which an organization uses fixed costs in its cost structure is measure by:

1. Financial leverage
2. Operating leverage
3. Fixed cost leverage
4. Contribution leverage
5. Efficiency leverage

6.

Which of the following is (are) example(s) of a mixed cost?

1. A building that is used for both manufacturing and sales activities
2. An employee compensation which consists of a flat salary plus a commission
3. Depreciation that elates to five different machines
4. Maintenance cost that must be split between sales abd admin
5. I only
6. II only
7. I and III
8. I, III and IV
9. All of above

7.

Sow corp recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to 50,000.00; variable costs were 100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?

1. 150,000
2. 151,000
3. 152,000
4. 153,000
5. None of the answers are correct

8.

The high low method and least squares regression are used by accountants to:

1. Evaluate divisional managers for purposes of raises and promotions
2. Choose amount alternative course of action
3. Maximize output
4. Estimate costs
5. Control operations