1. An increase in volume normally causes fixed costs to

1. Increase in total
2. Increase on a per unit basis
3. Decreases in total
4. Decrease on a per unit basis
5. None of the above

_____2. Which of the following would normally use process costing?

a. Custom race cars

b. Luxury yachts

c. Aircraft carriers

d. Paint

e. None of the above

_____3. The relevant range is

1. The range of activity that represents initial capital investment
2. The range of activity over which cost/volume relations are linear
3. The range of activity beyond current capacity
4. All of the above
5. None of the above

_____4. A decrease in volume normally causes variable costs to

1. Increase in total
2. Increase on a per unit basis
3. Decrease in total
4. Decrease on a per unit basis
5. None of the above

_____5. Which of the following is true concerning the Breakeven Point?

1. Total Variable Cost (TVC) is equal to Total Revenue (TR)
2. Total Variable Cost (TVC) is equal to Total Contribution Margin (TCM)
3. Total Revenue (TR) is equal to Total Fixed Costs
4. Total Contribution Margin (TCM) is equal to Total Fixed Costs (FC)
5. None of the above