- Mixed costs:

a) Consist of fixed and variable costs

b) Are constant in total

c) Consist of the variable portion of all costs

d) Have a constant per-unit value

- CVP analysis is most likely to be used for which of the following decisions?

a) The amount of discretionary expenditures for the next period

b) The organizational vision

c) The exact level of operations at which the organization will operate

d) Whether to buy a business segment operating in Germany

- Which of the following techniques examine changes in profits in response to changes in volume, costs, and prices?

a) Activity-based costing

b) Financial statement analysis

c) Cost-volume-profit analysis

d) Balanced scorecard

- CVP analysis can be used to make decisions about discretionary expenditures, such as:

a) Advertising

b) Taxes

c) Direct materials purchases

d) City license fees

- When the cost object is a unit produced, lubricating oil for production machines would be a(n):

a) Direct cost

b) Indirect cost

c) Sunk cost

d) Opportunity cost