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Question 1. In business, mixed costs are actually quite common.
True False
Question 2. Under the high-low method of estimating fixed and variable costs from a mixed cost the highest and lowest cost levels are identified and the difference in activity is deemed to represent variable cost.
True False Question 3. To calculate regression to find the fixed portion of mixed costs one needs to know how to use a slide rule.
True False Question 4. The goal of CVP analysis is to provide a foundation for pricing decisions, product offerings, and management of an organization's cost structure.
True False Question 5. Changes in per-unit revenue, without changes in total fixed costs or per-unit variable costs can sometimes cause drastic impacts on firm profits.
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