Chapter 2 Practice Materials.docVIP

Chapter 21 Cost Behavior and Cost-Volume-Profit Analysis MULTIPLE CHOICE 1. Cost behavior refers to the manner in which: a. a cost changes as the related activity changes b. a cost is allocated to products c. a cost is used in setting selling prices d. a cost is estimated ANS: A DIF: Easy OBJ: 21-01 NAT: AACSB Analytic | IMA-Performance Measurement 2. The three most common cost behavior classifications are: a. variable costs, product costs, and sunk costs b. fixed costs, variable costs, and mixed costs c. variable costs, period costs, and differential costs d. variable costs, sunk costs, and