1. Variable costs, as activity increases, will: a. increase per unit. b. increase in total C. remain constant per unit. d. increase per unit and in total. 2. A cost that increases in total, but not proportionately with increases in the activity level, is a: 3. Given the following costs for Harper Company, classify each cost as variable, fixed, or mixed. Total Cost at 4,000 Units 6,000 Units Cost A $12,300 $16,650 Cost B 17,200 25,800 Cost C 13,000 13,000 4. Given the following data, compute equivalent units of production for conversion costs: Beginning Work in Process-4,000 units, 40% complete Units Started into Production40,000 units Ending Work in Process-3,000 units, 20% complete. PRVITUTULL 12. The ROI formula for an investment center is: a. Controllable Margin + Sales. b. Net Income + Average Operating Assets. C. Controllable Margin + Average Operating Assets. d. Contribution Margin + Average Operating Assets. 13. The Ohio Division of Allied Corp. had an ROI of 10% when sales were $1,500,000 and controllable margin was $300,000. What were the average operating assets? 5. The assumptions that underlie basic CVP analysis include all of the followingxcept: a. when more than one product is sold, total sales will be in a constant sales mix. b. all costs can be classified as variable or fixed with reasonable accuracy. c. the behavior of both costs and revenues is linear throughout the relevant range. d. All these are assumptions. 6. When there is beginning work in process, units transferred out are computed by subtracting: 1. The annual rate of return technique of capital budgeting ignores the: a. time value of money. b. timing of the cash flows. c. length of time over which the cash flows will be received. d. All of these answers are correct. 2. When using discounted cash flow techniques