Question: 1. The three most common cost behavior classifications are: variable costs, product costs, and sunk costs fixed costs, variable costs, and mixed costs variable costs,
1. The three most common cost behavior classifications are: variable costs, product costs, and sunk costs fixed costs, variable costs, and mixed costs variable costs, period costs, and differential costs variable costs, sunk costs, and opportunity costs a. b. c. d. 2. Costs that remain constant in total dollar amount as the level of activity changes are called: a. fixed costs b. mixed costs c. product costs d. variable costs . Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes? a. Direct labor b. Salary of a factory supervisor c. Units of production depreciation on factory equipment d. Direct materials 4. Which of the following describes the behavior of the fixed cost per unit? a. Decreases with increasing production b. Decreases with decreasing production c. Remains constant with changes in production d. Increases with increasing production 5. Most operating decisions of management focus on a narrow range of activity called the a. relevant range of production b. strategic level of production c. optimal level of production d. tactical operating level of production 6 Costs that vary in total in direct proportion to changes in an activity level are called: a. fixed costs b. sunk costs c. variable costs d. differential costs
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