Question 2 2) Which of the following is a variable cost? O A cost that is $52,000 when production is 65,000, and $52,000 when production is 91.000. O A cost that is $26,000 when production is 65,000, and $36,400 when production is 91,000. O A cost that is $26,000 when production is 65,000, and $26,000 when production is 91,000. O A cost that is $26,000 when production is 65,000, and $52,000 when production is 91,000. Question 3 3) The linearity assumption is: O A cost that is $26,000 when production is 65,000, and $36,400 when production is 91,000. O A cost that is $26.000 when production is 65,000, and $26,000 when production is 91,000. O A cost that is $26,000 when production is 65,000, and $52,000 when production is 91.000. D Question 3 3) The linearity assumption is: O the assumption that total cost depends on activity level. the assumption that the relationship between fixed costs and variable costs can be approximated by a curved line. the assumption that the relationship between fixed costs and variable costs can be approximated by a straight line. realistic in all costing situations. Question 4 4) Stella, Inc. must perform maintenance on its production machinery after every 10,000 units produced. Production varies The cost of this maintenance would be classified as a: O step cost. variable cost. 1 pts Question 5 5) Mohave, Inc. produces approximately 4,000 units per month, and it places a quality assurance logo on each of its units. To use this logo, it must pay the quality assurance firm $5,000 per month plus $1 per unit. The cost to Mohave of using the quality assurance logo would be a: O variable cost. O step cost. mixed cost. fixed cost. Question 6 1 pts 6) Which of the following is not correct about " Square" in regression analysis? OR Square is a measure of "goodness of fit of the model. Question 7 7) Which of the following is the correct equation for total mixed costs under the linearity assumption? O Total Fixed Costs +(Variable Cost per Unit x Units of Activity). O Total Variable Costs + (Fixed Cost per Unit x Units of Activity). (Total Fixed Costs Units of Activity) + (Total Variable Costs Units of Activity). O (Total Fixed Costs Units of Activity) + Total Variable Costs