Question 1

1. Fixed costs are those which do not respond to changes in volume.

   True

   False

4.09 points

Question 2

1. On a cost-volume graph, costs are represented on the x-axis, and volume is represented on the y-axis.

   True

   False

4.17 points

Question 3

1. On a cost-volume graph, costs are represented on the x-axis, and volume is represented on the y-axis. Variable costs are theoretically equal to $0 when volume is 0.

   True

   False

4.17 points

Question 4

1. The total costs for a company are composed of both fixed and variable costs.

   True

   False