5. In order to choose the proper activity base for a cost, managerial accountants must be familiar with the operations of the entity. a. Tnae b. False 6. Total fixed costs change as the level of activity changes a. Trae b.False 7. The data required for determining the break-even point for a business are the total estimated fixed costs for a period, stated as a percentage of net sales. a. True b. False 8. The point in operations at which revenues and expenses are exactly equal is called the break-even point a. True b. False 9. If direct materials cost per unit increases, the break-even point will increase. a. True b. False 10. If direct materials cost per unit decreases, the amount of sales necessary to earn a desired amount of profit will decrease. a. True b. False