Font Paragraph Styles Editing Voice Question 1 (10 points) 17. The method used to separate mixed costs that uses only two data points (even if more reliable points are available) is called: 1. A cost that does not change as the level of business activity changes is a: a. regression analysis a fixed cost b. scatter graphing b. mixed cost c. the engineering approach c. variable cost d. the high-low method d. semi-variable cost 2. The break-even point is important to managers because it: 8. After all costs have been covered by the firm's sales, the amount 1 tells managers how far sales can decline before the company will incur a loss remaining is the called the b. determines the required sales in dollars to achieve a profit a. variable, gross profit c. is useful to owners and managers starting a business b. cost of goods sold, contribution margin d. Answers a and c are both correct c. variable; contribution margin d. fixed, gross margin 3. The behavior of a variable cost is the opposite of the behavior of a: a. fixed cost 9 In the basic mathematical equation, the Y represents: b. liquid cost a. total cost c. period cost b. fixed cost d mixed cost c. unit variable cost d. activhy level If the selling price of an item increases, while all other costs are held constant, the break even point in units will: 10. The main difference between a contribution income statement and a a increase functional income statement is that the functional income statement does not b decrease classify costs as: c. remain unchanged a product and period d, depend on the original sales price b. product and mixed c. period and fixed 5. When a cost no longer holds to its cost behavior pattern, the activity may be: d, fixed and variable a. a mixed cost b. a fixed cost c. an indeterminable cost d. outside the relevant range The Duchess Bakery makes and sells fresh cookies. If the cookies sell for $1.60 each and they cost $0.85 to make plus an additional 20% of the selling price for selling and administrative variable costs, the variable cost per cookie is (rounded): a. $0 55 b $1 06 c. $0 92 d. $1 17