Reference no: EM132622918

Problem 1: Forecasting a cost at a particular level of activity is called:

A. cost estimation.
B. cost prediction.
C. cost behaviour.
D. cost functions

Problem 2: A cost that has both a fixed and variable component is called a:

A. step-fixed cost.
B. step-variable cost.
C. semivariable cost.
D. discretionary cost.

Problem 3: A cost that remains unchanged in total as the activity level (or cost driver) changes is called a:

A. fixed cost.
B. variable cost.
C. step-fixed cost.
D. step-variable cost.

Problem 4: A cost that changes in total in direct proportion to a change in the cost driver is a:

A. variable cost.
B. fixed cost.
C. semivariable cost.
D. step-variable cost.

Problem 5: Costs that remain fixed over wide ranges of activity but jump to a different amount outside that range are called:

A. step-fixed costs.
B. step-variable costs.
C. semivariable costs.
D. curvilinear costs.