c. Ratio analysis. Td. Time and motion analysis. 2. Which of the following costs typically include both fixed and variable components? a. Direct materials Direct OFactory overhead d. None of these 3. Expressing plans for a business in financial terms is commonly called a. budgeting. b. strategic planning. c. master planning. d. operational planning. 4. Fixed cost per unit: a. decreases as production volume increases. b. decreases as production volume decreases. c. is not affected by changes in the production volume. d. increases as production volume increases. method? section of the statement of cash flows may be prepared using either the direct method or the indirect a. Financing activities b. Operating activities c. Investing activities d. All of these answers are correct. 6. Working capital is defined as: a. Current assets divided by current liabilities. b. Total assets minus total liabilities. c. Current assets less current liabilities. d. Current liabilities divided by total liabilities. 7. Select the incorrect statement about the planning process. a. Planning decisions can often be sub-divided into three distinct planning phases, short-term, intermediate-term, and long-term. b. The nature of planning changes with the length of the time period being considered. c. The shorter the time period, the less general the plans. d. The longer the time period, the more specific the plans. 8. The excess of revenue over variable costs is referred to as a. gross profit b. contribution margin c. manufacturing margin d. gross margin 9. Phan Company has not reported a profit in five years. This year the company would like to narrow its loss to $7,500. Assuming its selling price is $36.50 per unit and its variable costs per unit are $24, how many units mus be sold to achieve its target given that total fixed costs are S60,000? (Do not round intermediate calculations. a. 2.188 b. 1.439 c. 1.600 d. 4.200