When a cost base does not change regardless of the activity the cost is a fixed cost.

True

False

1 points

QUESTION 2

Fix cost does not remain consistent when activity changes.

True

False

1 points

QUESTION 3

Fixed cost per unit is not fixed.

True

False

1 points

QUESTION 4

A fixed cost represents a commitment to an economic sacrifice.

True

False

1 points

QUESTION 5

Total variable costs increases in direct proportion to the activity.

True

False

1 points

QUESTION 6

Variable cost per unit remains constant regardless of the activity.

True

False

1 points

QUESTION 7

Variable cost structure produces a proportional relationship between sales and profitability.

True

False

1 points

QUESTION 8

The term fixed refers to the behavior of total variable cost.

True

False

1 points

QUESTION 9

The term variable refers to the behavior of total fixed cost.

True

False

1 points

QUESTION 10

Mixed costs include both fixed and variable components.

True

False