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Exercise 1-10 Cost Terms

Exercise 1-10 Cost Terms
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ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 2: Accounting, Management, and Cost Decisions

Chapter 1, Exercise 1-10 Cost Terms [LO 5] Identify each of the following statements with fixed costs or variable costs by writing “fixed” or “variable” in the space provided.
a. A cost that varies in total with changes in the activity level.
b. A cost that varies on a per-unit basis with changes in the activity level.
c. A cost that remains fixed per unit with changes in the activity level.
d. A cost that remains fixed in total with changes in the activity level.

 

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