Mixed costs are:

a combination of present and future costs

a combination of operating and non-operating costs

have both fixed and variable cost components

include both direct and indirect costs

The term "Cost behavior" refers to :

the way costs respond to changes in revenue

the way costs are affected by human behaviour

the way costs are affected by changes in quantity

the way costs respond to management decision-making

In estimating and predicting cost, the relevant range is the range within which:

all costs are relevant in making a decision

the range within which cost relationships can be reliably predicted

the range within which costs behave in an unpredictable manner

all costs are assumed to behave in the same manner

Which costs will not change with a decrease in activity within the relevant range?:

total fixed costs and total variable costs

unit fixed costs and total variable costs

unit variable cost and unit fixed cost

unit variable cost and total fixed cost

Which of the following is the proper sequence of events in an activity-based costing system?

Identification of cost drivers, identification of cost pools, calculation of cost application rates, assignment of cost to products.

Identification of cost pools, identification of cost drivers, calculation of cost application rates, assignment of cost to products.

Assignment of cost to products, identification of cost pools, identification of cost drivers, calculation of cost application rates.

Calculation of cost application rates, identification of cost drivers, identification of cost pools, assignment of cost to products.

In an activity-based costing system, direct materials used would typically be classified as a:

unit-level cost.

batch-level cost.

product-sustaining cost.

facility-level cost.

Which of the following is not a broad, cost classification category typically used in activity-based costing?

Unit-level.

Batch-level.

Product-sustaining level.

Management-level.

Foster, Inc., an appliance manufacturer, is developing a new line of ovens that uses controlled-laser technology. The research and testing costs associated with the new ovens is said to arise from a:

unit-level activity.

batch-level activity.

product-sustaining activity.

facility-level activity.

Stanley Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Stanley's non-value-added cost would be:

$0.

$150.

$300.

$900.