12) Merchandising companies normally report: A) only finished goods inventory B) only merchandise inventory C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts D) no inventory accounts 13) For an automobile manufacturer, period costs include the cost of A) the dashboard B) labor used for assembly C) advertising D) assembly-line equipment 14) A linear cost function can represent: A) mixed cost behaviors B) fixed cost behaviors C) variable cost behaviors D) All of these answers are correct. 15) For February, the cost components of a picture frame include $0.40 for the glass, 50.67 for the wooden frame, and S0.83 for assembly. The assembly desk and tools cost $570. Two hundred fifty frames are expected to be produced in the coming year. What cost function best represents these costs? A) y = 1.90 + 570X B) y = 570+ 1.90X C) y = 570 +1.07X D) y = 1.07 +570X 16) Which of the following statements is true of a linear cost function? A) It presents total cost as an intercept. B) It presents variable cost as a slope coefficient. C) It presents variable cost as an intercept. D) It presents total cost as slope coefficient. 17) The breakeven point is the activity level where: A) revenues equal fixed costs B) revenues equal variable costs C) revenues equal the sum of variable and fixed costs D) contribution margin equals variable costs