MC3–1
Chapter 3
Cost Behavior
Multiple Choice
1. (LO 1—Fixed cost behavior)
Answer: A
2. (LO 1—Variable cost behavior)
3. (LO1—Variable cost behavior)
Answer: B
4. (LO1—Mixed cost behavior)
Answer: C
5. (LO 1—Variable cost behavior)
Answer: B
6. (LO 1—Fixed cost behavior)
Answer: A (Note that the cost per unit when 10 units are produced should
7. (LO1—Mixed Cost Behavior)
Solutions to Multiple Choice
8. (LO1—Mixed cost behavior)
9. (LO1—The Relevant Range)
10. (LO1—Fixed cost behavior)
11. (LO 1—Fixed and variable cost behavior)
12. (LO 1—Variable cost behavior)
Answer: C
13. (LO 1—Variable cost behavior)
14. (LO 2—Basic regression analysis)
15. (LO 2—Mixed cost behavior)
MC3–3
16. (LO 2—Mixed cost analysis using the high/low method)
17. (LO 2—Mixed cost analysis using the high/low method)
18. (LO 2—Mixed cost analysis using the high/low method)
19. (LO2—The high/low method)
20. (LO 3—Variable cost behavior and relevancy)
21. (LO 2—Fixed cost behavior and relevancy)
Answer: C
Solutions to Multiple Choice
22. (LO 3—Impact of income taxes on cash expenditure)
23. (LO 4, 5—Impact of income taxes on sales revenue)
Answer: B
24. (LO 4—Absorption versus variable costing)
Absorption costing:
25. (LO 4, 5—Absorption versus variable costing)
MC3–5
26. (LO 4—Absorption versus variable costing)
Answer: C
27. (LO 4—Absorption versus variable costing)
28. (LO 4—Absorption versus variable costing)
29. (LO 4—Absorption versus variable costing)
30. (LO 4—Absorption versus variable costing)
31. (LO 4—Absorption versus variable costing)
Answer: B
32. (LO 5—Income Statement impact of absorption versus variable costing)
33. (LO 5—Income Statement impact of absorption versus variable costing)
Answer: B