4 Which of the following is a cost that changes as the level of activity changes (best answer) a fixed costs b engineered costs c sunk costs d opportunity costs 5 Which of the following characterizes a time period long enough to allow management to change the level of production within the constraints of current total productive capacity a short run b medium run c long run d relevant range 6 Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent a irrelevant range b relevant range c short range d long range 7 Which statement is correct concerning the learning curve function a This function shows how the amount of time required to perform a task goes up per unit as the number of units increases b This function shows how the amount of time required to perform a task goes down per unit as the number of units increases c This function shows how the amount of time required to perform a task goes up per unit as the number of units decreases d This function shows how the amount of time required to perform a task goes down per unit as the number of units decreases 8 Which of the following represents costs that have both a fixed and variable component a curvilinear variable b curvilinear fixed c semi variable d semi fixed 9 What are selling, general and administrative costs considered sticky a These costs increase more when sales increase than they decrease when sales decrease by the same amount b These costs increase less when sales increase than they decrease when sales decrease by the same amount c These costs increase the at the same rate when sales increase and decrease at the same rate when sales decrease by the same amount d None of the answers are correct 10 If all the data points were on a line, the r square would be a zero b one c two d impossible to interpret 11 A financial model is only as good as a the rate of growth in the economy b the companys operating leverage c the assumptions it uses and the data it uses d None of the answers are correct 12 How does cost volume profit analysis allows management to determine the relative profitability of a product a By highlighting potential bottlenecks in the production process b By keeping fixed costs to an absolute minimum c By determining the contribution margin and projected profits at various levels of production d By assigning costs to a product in a manner that maximizes the contribution margin

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4. Which of the following is a cost that changes as the level of activity changes (best answer)? a. fixed costs. b. engineered costs. c.

4. Which of the following is a cost that changes as the level of activity changes (best answer)?

a.	fixed costs.
b.	engineered costs.
c.	sunk costs.
d.	opportunity costs.

5. Which of the following characterizes a time period long enough to allow management to change the level of production within the constraints of current total productive capacity?

a.	short run.
b.	medium run.
c.	long run.
d.	relevant range.

6. Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent?

a.	irrelevant range.
b.	relevant range.
c.	short-range.
d.	long-range.

7. Which statement is correctconcerning the learning curve function?

a.	This function shows how the amount of time required to perform a task goes up per unit as the number of units increases.
b.	This function shows how the amount of time required to perform a task goes down per unit as the number of units increases.
c.	This function shows how the amount of time required to perform a task goes up per unit as the number of units decreases.
d.	This function shows how the amount of time required to perform a task goes down per unit as the number of units decreases.

8. Which of the following represents costs that have both a fixed and variable component?

a.	curvilinear variable.
b.	curvilinear fixed.
c.	semi-variable.
d.	semi-fixed.

9. What are selling, general and administrative costs considered sticky?

a.	These costs increase more when sales increase than they decrease when sales decrease by the same amount.
b.	These costs increase less when sales increase than they decrease when sales decrease by the same amount.
c.	These costs increase the at the same rate when sales increase and decrease at the same rate when sales decrease by the same amount.
d.	None of the answers are correct.

10. If all the data points were on a line, the r-square would be

a.	zero.
b.	one.
c.	two.
d.	impossible to interpret.

11. A financial model is only as good as

a.	the rate of growth in the economy.
b.	the companys operating leverage.
c.	the assumptions it uses and the data it uses.
d.	None of the answers are correct.

12. How does cost-volume-profit analysis allows management to determine the relative profitability of a product?

a.	By highlighting potential bottlenecks in the production process.
b.	By keeping fixed costs to an absolute minimum.
c.	By determining the contribution margin and projected profits at various levels of production.
d.	By assigning costs to a product in a manner that maximizes the contribution margin.