Question $1$

Understanding cost behavior is essential for:

a$)$ none of these are correct.

b$)$ assessing fixed costs

c$)$ anticipating future expenses

d$)$ understanding marginal costs

e$)$ investing in fixed assets

Question $2$

Total variable cost is a cost that:

a$)$ changes only when the price of resources changes.

b$)$ changes in direct proportion with changes in activity levels

c$)$ varies with changes in activity but not in direct proportion

d$)$ does not change in total when activity level changes.

Question $3$

The total annual hours for a standard work year at $40$ hours per week will differ from the total annual hours for a

standard work year at $37\mathrm{.}5$ hours per week. The standard work year at $40$ hours per week will amount to:

a$)1,840$

b$)1,950$

c$)2,912$

d$)2,080$

Question $4$

The top four reasons given by employees for leaving a job are reported below. Which is the least likely to be within the

control of managers?

a$)$ Personal reason

b$)$ Career advancement

c$)$ Better pay

d$)$ Poor relationship with supervisor