1. The relevant range are fixed costs for a range of volume but increase to a higher level when the upper bound of the range is exceeded.

True

False

2. Account analysis is the most common approach to estimating fixed and variable costs.

True

False

3. The break-even point is not the number of units that must be sold for a company to break even.

True

False

4. The contribution margin is the difference between the expected level of sales and the variable costs of the level of sales.

True

False

5. In CVP the primary assumption is that costs can be separated into their mixed and variable components.

True

False