4) A single indirect-cost rate may distort product costs because a. there is an assumption that all support activities affect all products. b. it recognizes specific activities that are required to produce a product. c. costs are not consistently recorded. d. it fails to measure the correct amount of total costs. 5) Which of the following is NOT an assumption of CVP analysis? a. Costs may be separated into separate fixed and variable components b. Total revenues and total costs are linear in relation to output units c. Unit selling price, unit variable costs, and unit fixed costs are known and remain constant. d. Proportion of different products will remain constant when multiple products are sold 6) The account analysis method estimates cost a. by classifying cost accounts as variable, fixed, or mixed based on qualitative analysis b. using time-and-motion studies. c. at a high cost, which is therefore seldom used d. in a manner that cannot be usefully combined with any other cost estimation methods. 7) As the sales volume increases in the relevant range, variable costs per unit but total variable costs a. do not change; increase b. do not change; decrease c. increase; do not change d. decrease; do not change 8) Mercy Hospital has total variable costs of 80% of total revenues and fixed costs of$20 million per year. There are 70,000 estimated patient-days for next year. What is the break-even in total revenue? a. $10 million b. $12.5 million c. $20 million d. $100 million point expressed that the investor company buys only with the intent to resell them shortly 9) Marketable securities are called a. available-for-sale securities b. underpriced securities c. trading securities d. options at December 31, 2012: 10) An investor in trading securities has the following information available Market value of trading securitics Acquisition cost of trading securities How does the investor report December 31, 2012 $10,000 $9,000 the change in market value on the trading securities at a. unrealized loss of S1,000 on income statement b. unrealized gain of $1,000 on income statement c. $1,000 is added to other comprehensive income account on th d. $1,000 is subtracted from the other comprehensive income acco aance the balance sheet