AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Identify and describe fixed; variable; and mixed cost behavior. 104. A cost that is considered variable for one activity base may be considered for a different activity base. TRUE AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Calculate the magnitude of operating leverage. 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 AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Select an appropriate time period for calculating the average cost per unit. 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 AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Select an appropriate time period for calculating the average cost per unit. 107. Potential problems associated with cost averaging can be reduced by averaging the cost over a shorter span of time. FALSE AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Select an appropriate time period for calculating the average cost per unit. 108. A cost that is part selling cost and part manufacturing cost is referred to as a mixed cost. FALSE
AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-01 Identify and describe fixed; variable; and mixed cost behavior. 104. A cost that is considered variable for one activity base may be considered for a different activity base. TRUE AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-04 Calculate the magnitude of operating leverage. 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 AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Select an appropriate time period for calculating the average cost per unit. 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 AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 1 Easy Learning Objective: 02-05 Select an appropriate time period for calculating the average cost per unit. 107. Potential problems associated with cost averaging can be reduced by averaging the cost over a shorter span of time. FALSE AACSB: Analytic AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 02-05 Select an appropriate time period for calculating the average cost per unit. 108. A cost that is part selling cost and part manufacturing cost is referred to as a mixed cost. FALSE
Test-Bank-for-Fundamental-Managerial-Accounting-Concepts-7th-Edition-by-Edmonds.docx