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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

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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 lincar 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 functions 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 point expressed in total revenue? a. $10 million b. $12.5 million c. $20 million d. $100 million 9) Marketable securities that the investor company buys only with the intent to resell them shortly are called a. available-for-sale securities b. underpriced securities c trading securities d. options urities has the following information vailable at December 31, 2012 n Market value ot tof trading securithsn e in market value on the trading securities at $10,000 $9,000 How does the investor report the change in market value on the December 31, 2012? 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 comprehensivo nc cohe balanca d. $1,000 is subtracted from the other comprehensive income accou het on the balance sheet

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