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. Costs that decreases on a per unit basis with increases in the level of activity is a(n) a. Direct cost b. Sunk cost c.
. Costs that decreases on a per unit basis with increases in the level of activity is a(n) a. Direct cost b. Sunk cost c. Fixed cost d. Variable cost 2. For Dell Corporation, costs for the delivery of computers to the customers are a. Fixed costs and indirect product costs b. Fixed costs and period costs c. Manufacturing costs that cannot be conveniently traced to a product d. Variable costs and period costs 3. At the breakeven point, the total fixed costs equal a. Variable costs b. Selling and administrative costs c. Contribution margin d. Target profit 4. Break even analysis assumes that over the relevant range a. Total fixed costs change with quantity sold b. Unit variable costs are unchanged c. Total costs are unchanged d. Price decreases as output increases 5. (CPA adapted) The changes MOST likely to increase the breakeven point would be to a. increase both the fixed costs and the contribution margin b. decrease both the fixed costs and the contribution margin c. decrease the fixed costs and increase the contribution margin d. increase the fixed costs and decrease the contribution margin e. none of the above are likely to increase breakevern
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