True or False ( 10 point 1 point each)

________1. The relevant activity base for a cost depends upon which base is most closely associated with the cost and the decision-making needs of management.

	a.	True
	b.	False

________2. The range of activity over which changes in cost are of interest to management is called the relevant range.

	a.	True
	b.	False

________3. Total fixed costs change as the level of activity changes.

	a.	True
	b.	False

________4. Variable costs are costs that remain constant in total dollar amount as the level of activity changes.

	a.	True
	b.	False

________5. Direct materials and direct labor costs are examples of variable costs of production.

	a.	True
	b.	False

________6. Total variable costs change as the level of activity changes.

	a.	True
	b.	False

_______7. Unit variable cost does not change as the number of units of activity changes.

	a.	True
	b.	False

________8. A mixed cost has characteristics of both a variable and a fixed cost.

	a.	True
	b.	False

________9. For purposes of analysis, mixed costs can generally be separated into their variable and fixed components.

	a.	True
	b.	False

________10. The contribution margin ratio is the same as the profit-volume ratio.

	a.	True
	b.	False