352 Chapter 21 TRUE/FALSE Instructions: Indicate whether each of the following statements is true or false by placing a check mark in the appropriate column. True False 1. Most operating decisions by management focus on a range of activity, known as the relevant range, within which management plans to operate. 2. Mixed costs, sometimes referred to as semivariable or semifixed costs, are costs that are mostly variable.... 3. The high-low method can be used to estimate the fixed cost and variable cost components of a mixed cost........... 4. Using the high-low method, the fixed costs will differ at the highest and lowest levels of activity....... 5. The point in the operations of a business at which revenues and expired costs are equal is called the break-even point. 6. The data required to compute the break-even point are (1) total estimated fixed costs for a future period and (2) the unit contribution margin. 7. Decreases in the unit selling price will decrease the break-even point. .... 8. Decreases in fixed costs will increase the break-even point. ..... 9. The operating leverage is determined by dividing the income from operations by the sales dollars at break-even. 10. A primary assumption of cost-volume-profit analysis is that the quantity of units in the beginning inventory is equal to the quantity of units in the ending inventory