50.Within the relevant range, if there is a change in the level of the cost driver then   a. total fixed costs and total variable costs will change. b. total fixed costs and total variable costs will remain the same. c. total fixed costs will remain the same and total variable costs will change. d. total fixed costs will change and total variable costs will remain the same.

20. Which of the following statements is correct about variable costs?      a. Variable costs vary on per unit basis but remain the same in total as the level of activity changes       b. Variable costs vary on per unit basis as the level of activity changes       c. Variable costs vary in total in direct proportion to changes in the level of activity       d. Variable costs remain the same in total as the level of activity changes

When output volume increases, do fixed costs per unit increase, decrease, or stay the same within the relevant range of activity? Explain.

7. Which of the following charts best represent total variable costs? For each chart, the line represents the cost behavior pattern, the vertical axis represents costs, and the horizontal axis represents total volume, (A) Your answer is (B) (C) (D) Explain your answer: 8. Which of the following is NOT a cost estimation method? A) High-low cost estimation B) Scatter diagrams C) Least-square regressions D) CVP analysis Your answer is Explain your answer: 9. Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $120,000, and variable costs are 40 percent of sales revenue. Determine its break-even point in sales dollars. A) $250,000 B) $200,000 c) $240,000 D) $360,000 Your answer is Explain your answer: