7. You are given the cost and volume information below: Volume 1 unit 10 units 100 units Cost $ 15 150 1500 What type of a cost is given? a. fixed cost b. variable cost c. step cost d. mixed cost e. rent cost. 8. Which of the following statements regarding graphs of fixed and variable costs is true? a. Variable costs can be represented by a straight line where costs are the same for each data point. b. Fixed costs can be represented by a straight line starting at the origin and continuing through each data point. c. Fixed costs are zero when production is equal to zero. d. Variable costs are zero when production is equal to zero. e. Fixed and Variable costs are curvilinear form above zero on the "Y" axis. 9. All of the following statements regarding budgeting is true except a. Budgeting helps managers determine the resources needed to meet their goals and objectives. b. Budgeting is a key ingredient in good decision-making. c. Budgeting is a bookkeeping task d. The focus of budgeting is planning. e. Budgeting is an executive responsibility. b. Budgeting is a key ingredient in good decision-making. c. Budgeting is a bookkeeping task d. The focus of budgeting is planning, e. Budgeting is an executive responsibility. 10. Broihan Corporation has the following purchases budget for the last half of 2002: July August September $100,000 80,000 110,000 October November December $ 90,000 100,000 94,000 Historically, the company pays one half at the time of purchase and the remainder in the month following purchase. What are the expected cash disbursements in August? a. $ 80,000. b. $ 90,000. c. $ 95,000. d. $100,000 e. $105,000 11. The Inground Sprinkler Supply sells sprinkler systems suited for large or small yards. The company has decided to adopt an activity-based costing system. Last year the company incurred $1,000,000 in overhead costs related to the following activities: Activity Purchasing Material handling Quality inspection Allocation Base number of purchase orders number of shipments received number of inspections Overhead Cost $ 350,000 200,000 450,000 The activities for large and small yard systems were as follows: purchase orders shipments received inspections Large 15,000 7,500 11,500 Small 20,000 12,500 11,000 If a customer requested a bid on a specially designed sprinkler that would probably require four inspections, how much quality inspection overhead would you include in the bid? a. So b. $40 c. $80 d. $120. e. $160. 12. Bubblemania has three product lines - A, B, and C