ACC 206 week 3 quiz 3 (All correct)

Question 1. 1. In business, mixed costs are actually quite common. (Points : 1)

        True

        False

Question 2. 2. Under the high-low method of estimating fixed and variable costs from a mixed cost the highest and lowest cost levels are identified and the difference in activity is deemed to represent variable cost. (Points : 1)

        True

        False

Question 3. 3. To calculate regression to find the fixed portion of mixed costs one needs to know how to use a slide rule. (Points : 1)

        True

        False

Question 4. 4. The goal of CVP analysis is to provide a foundation for pricing decisions, product offerings, and management of an organization’s cost structure. (Points : 1)

        True

        False

Question 5. 5. Changes in per-unit revenue, without changes in total fixed costs or per-unit variable costs can sometimes cause drastic impacts on firm profits. (Points : 1)

        True

        False