1. A cost that remains constant per unit at various levels ofactivity is a

variable cost.

mixed cost.

manufacturing cost.

fixed cost.

2. A fixed cost is a cost which

remains constant in total with changes in the level ofactivity.

remains constant per unit with changes in the level ofactivity.

varies in total with changes in the level of activity.

varies inversely in total with changes in the level ofactivity.

3. Which of the following costs are variable?

Cost	10,000 Units	30,000 Units
1.	$100,000	$300,000
2.	40,000	240,000
3.	90,000	90,000
4.	50,000	150,000

only 2

only 1

1 and 4

1 and 2

4.At the high level of activity in November, 8000 machine hourswere used and power costs were $20000. In April, a month of lowactivity, 3000 machine hours were used and power costs were $13500.Using the high-low method, the estimated fixed cost component ofpower costs is

$9600.

$13500.

$20000.

$10400.

5. Sales are $600000 and variable costs are $420000. What is thecontribution margin ratio?

70%.

43%.

30%.

Cannot be determined because amounts are not expressed perunit.