Date: Class: Name TEST 2 4,5,6 14. Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service a. number of packages picked up b. total of miles driven e, number of truck drivers d how many trucks are in service 1 15. Which of the following activity bases would be the most appropriate for food costs of a hospital? a. how many MRI's are taken b number of nurses scheduled to work c. number of patients who stay in the bospital d. quantity of prescriptions filled 16. Most operating decisions of management focus on a narrow range of activity called the a, tactical operating level of production b. relevant range of production c. optimal level of production d. strategic level of production 17. Costs that vary in total in direct proportion to changes in an activity level are called a. variable costs b. fixed costs e. differential costs d. sunk costs 18. Which of the following is an example of a cost that varies in total as the number of units produced changes? a, salary of a production supervisor b. straight-line depreciation on factory equipmernt c. property taxes on factory buildings d. direct materials cost 19. The graph of a variable cost when plotted against its related activity base appears as a a. eircle b. rectangle c.curved line d. straight line 20. Which of the following is not an example of a cost that varies in total as the number of units produced changes? a. wages of assembly worker b. direct materials cost c. insurance premiums on factory building d. electricity per KWH to operate factory equipment Cooyright Cangage Loaming. Powered by Cognero Page 4