98.A low magnitude of operating leverage is best for most companies.
True False
99.The BRC Company is considering the introduction of a new line of high end electronics. Because there is considerable uncertainty with regard to the demand for the products, the company would probably be served better by a variable cost structure.
True False
100.Descriptions of cost behavior as fixed or variable pertain to a particular range of activity.
True False
101.Variable costs will become fixed outside the relevant range.
True False
102.Within the relevant range, the fixed cost per unit can be expected to decrease with increases in volume.
True False
103.The activity base selected determines whether a cost behaves as a variable cost or fixed cost.
True False
104.A cost that is considered variable for one activity base may be considered fixed for a different activity base.
True False
105.One reason for computing the average cost for a product rather than the actual cost is that average cost is easier to compute.
True False
106.One way that computing an average cost per unit facilitates management decision making is that managers are provided more timely and more relevant cost information.
True False
107.Potential problems associated with cost averaging can be reduced by averaging the cost over a shorter span of time.
True False