1. Variable costs, as activity increases, will:
increase per unit.
increase in total and remain constant per unit.
remain constant per unit.
increase in total.
2. A cost that increases in total, but not proportionately with increases in the activity level, is a(n):
mixed cost.
variable cost.
variable cost with an unusual behavior pattern.
fixed cost.
3. The assumptions that underlie basic CVP analysis include all of the following except:
when more than one product is sold, total sales will be in a constant sales mix.
the behavior of both costs and revenues is linear throughout the relevant range.
All of three of the other choices are assumptions.
all costs can be classified as variable or fixed with reasonable accuracy.
4. A company's break-even point can be decreased by decreasing:
the contribution margin ratio.
the selling price.
the contribution margin.
variable costs per unit.