Reference no: EM132552478

Question 1: Costs which increase in total amount in direct proportion to an increase in output are called variable costs

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True

False

Question 2: When cost-volume-profit analysis is used, the need for a cost accounting system is eliminated

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True

False

Question 3: With variable costs, the cost per unit varies with changes in volume

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True

False

Question 4: With fixed costs, the cost per unit varies with changes in volume

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True

False

Question 5: Any business which operates at less than capacity will have smaller fixed costs than variable costs

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True

False

Question 6: As volume increases, per unit variable costs will decrease on a per-unit basis and stay the same in total

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True

False

Question 7: Identifying information relevant to a particular business decision requires an understanding of both quantitative and qualitative considerations

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True

False

Question 8: All incremental revenue or incremental costs are relevant

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True

False

Question 9: Even though costs, revenues, and other factors do not vary among possible courses of action, they may be relevant to a decision

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True

False

Question 10: In making a decision, management will look thoroughly at both relevant and irrelevant data.

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True

False