18-27

18. Variable costs are costs that business activity level changes. in total, but as the a. change; remain constant per unit b. remain constant; change per unit C. remain constant; remain constant per unit d. change; change per unit 19. A method used to separate the components of mixed costs by looking at the two extreme activity levels is called: a. scatter graphing b. the engineering approach c. the high-low method d. regression analysis 20. When using a graph to depict cost behavior, a flat horizontal line represents: a. a fixed cost b. a variable cost c. the x and y axis d. the y axis 21. A cost which contains elements of both fixed and variable costs is known as a: a. mixed cost b. total cost C. period cost d. product cost 22. A method that separates mixed costs into fixed and variable components by plotting historical activity and cost data is: a. scatter graphing b. the high-low method C. the engineering approach d. regression analysis _in total, but 23. Fixed costs are costs that_ the business activity level changes. a. change; remain fixed per unit b. fluctuate; are relatively stable C. remain constant; change per unit d. None of these answers is correct. 24. A drawback to using the high-low method is that this method is based on: a. activity b. costs C. only two data points at opposite extremes d. mathematical calculations When a cost no longer holds to its cost behavior pattern, the activity may be: 25. a. a mixed cost b. a fixed cost C. an indeterminable cost d. outside the relevant range 26. When When using a graph to depict cost behavior, an upward sloping line represents: a. the x axis b. a variable cost c. a fixed cost d. the y axis 27. The mathematical formula method to separate mixed costs that uses all the data points available is called: a. regression analysis b. scatter graphing c. the engineering approach d. the high-low method