11) Managers often approximate curvilinear costs and step costs as mixed costs.
12) If production increases by 15%, how will total variable costs likely react?
A) Increase by 7.5%
B) Increase by 15%
C) Decrease by 15%
D) Remain the same
13) Which of the following would be considered a discretionary fixed cost?
A) Property taxes and insurance
B) Depreciation
C) Employees wages
D) Advertising
14) Which of the following would be considered a committed fixed cost?
A) Research and Development
B) Depreciation
C) Office holiday party
D) Advertising
15) Management has little or no control over:
A) committed fixed costs.
B) discretionary fixed costs.
C) all fixed costs.
D) any of the above.
16) Which of the following cost behaviors cannot be accurately represented by a single straight line?
A) Step costs
B) Mixed costs
C) Fixed costs
D) Variable costs
17) When predicting costs at different volumes, managers should consider which of the following?
A) The relevant range of the cost
B) The type of cost behavior
C) Neither of the above
D) Both of the above
18) An equation of a line for all costs is:
A) y = vx - f.
B) y = fx + v.
C) y = f.
D) none of the above.
19) An equation of a line for total mixed costs is:
A) y = vx - f.
B) y = vx + f.
C) f = vx —y.
D) f = vx + y.
20) The equation for total fixed costs is:
A) y = vx - f.
B) y = vx + f.
C) y = f.
D) none of the above.