MT425: Identify each of the following

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.