Operating leverage is the extent or relative size of variable costs in the total cost structure. True or False True False Multi product CVP analysis uses composite units to estimate break even. It takes into consideration the proportion of each product sold. True or False True False Activity-based costing Involves four steps: (1) Identify activities and the costs they cause, (2) group similar activities Into cost pools, (3) determine an activity rate for each activity cost pool, and (4) allocate overhead costs to products using those activity rates. True or False True False The margin of safety is the excess of Multiple Choice Break-even sales over expected sales. Expected sales over variable costs. o Expected sales over fixed costs. Fixed costs over expected sales. Expected sales over break-even sales. The high-low method of deriving an estimated cost line uses all the data points available. True or False True False Departments are the cost objects when the plantwide overhead rate method is used. True or False True False The plantwide overhead rate is total plantwide allocation base divided by total budgeted plantwide overhead cost. True or False True False Cost-volume-profit analysis is a predictive tool for determining the profit consequences of future cost changes, price changes, and volume of activity changes. True or False True False