In a traditional cost management system, cost behavior is assumed to be driven only by

Question $1$ options:

unit based cost drivers.

non$-$unit level cost drivers.

activity$-$based cost drivers.

none of these.

Question $2(0\mathrm{.}5$ points$)$

When the volume of activity increases within the relevant range, the fixed cost per unit

Question $2$ options:

decreases at first, then increases.

remains the same.

decreases.

increases.

Question $3(0\mathrm{.}5$ points$)$

Which of the following costs is a variable cost?

Question $3$ options:

materials used in production

research and development

rent

supervisors' salaries

Question $4(0\mathrm{.}5$ points$)$

The linearity assumption is most likely to be a close approximation for an underlying nonlinear cost function

Question $4$ options:

within a relevant range of activity.

over the long run.

for short$-$run periods.

both a and c$.$

Question $5(0\mathrm{.}5$ points$)$

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $$20,000$ per year and operating cost is $$2$ per machine hour. Last year $275,000$ machine hours were used to produce $100,000$ units. What is the total maintenance cost per unit produced?

Question $5$ options:

$$0\mathrm{.}55$

$$4\mathrm{.}20$

$$5\mathrm{.}50$

$$5\mathrm{.}70$

Question $6(0\mathrm{.}5$ points$)$

The efficient level of activity performance is called

Question $6$ options:

unused capacity.

practical capacity.

activity capacity.

acquired capacity.

Question $7(0\mathrm{.}5$ points$)$

Which of the following is an example of a committed fixed expense?

Question $7$ options:

supervisor's salary

insurance on a building

depreciation on a factory building

direct labor

Question $8(0\mathrm{.}5$ points$)$

Cost behavior analysis focuses on how costs react to changes in activity levels.

Question $8$ options:

True

False

Question $9(1$ point$)$

Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $$20,000$ per year and operating cost is $$2$ per machine hour. Last year $275,000$ machine hours were used to produce $100,000$ units. If $300,000$ machine hours had been worked last year, what would be the total machine maintenance cost? $$620,000$

Question $9$ options:

$$260,000$

$$600,000$

$$20,000$

$$620,000$