Question: Please answer questions 16-19 16) Which statement is False re: Cost Behavior Analysis: a) The study of how different cost respond to changes in the
16) Which statement is False re: Cost Behavior Analysis: a) The study of how different cost respond to changes in the level of business activity. b) Business activities are the beginning of this analysis. c) The Activity Index identifies the activity that causes changes in behavior. d) Variable Cost are the only difference that causes changes in behavior. A) A is false B) B is false C) C is false D) D is false 17) Which statement is False as it regards Types of Incremental Analysis: a) Accept an order at a special price b) A decision with support for conclusion e.g. buy over rent. c) Make or buy part or finished products d) Allocate these cost to each period of production e) Allocate these cost to each product. A) A is false B) B is false C) C is false D) D is false 18) Which statement is False as it regards Variable and Fixed Cost: a) Cost directly and proportionately with changes in the activity level b) A cost that remains the same per unit at every level of activity e) Cost that remain the same until the production increases then these unit cost increase. d) The unit fixed cost decreases as the production increases. A) A is False B) B is False C) C is False D) D is False 19) Which statement is False as it regards Relevant Cost: a) Production of units does increase Fixed cost. b) Full capacity production of a plant normally rejects a special order which would increase production. c) An increase in unit cost will reject the production of a special order for production. d) An Opportunity Cost may be a potential benefit in the long term production plan. C) C is False D) D is False B) B is False A) A is False
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