Solved >   11) ________ contain elements of both fixed:1540994 …


11) ________ contain elements of both fixed and variable cost behavior.

A) Committed fixed costs

B) Discretionary fixed costs

C) Capacity costs

D) Mixed costs

12) The cost of using the telephone, which involves a flat rate per month plus a fee for every local and long-distance call would be a ________ cost.

A) step

B) fixed

C) variable

D) mixed

13) A company rents a machine to be used in operations.  The rental agreement calls for a flat rent payment of $2,000 per month plus $0.10 for each hour the machine is used.  This is an example of a ________.

A) fixed cost

B) variable cost

C) mixed cost

D) step cost

14) Which is NOT a step cost?

A) When oil and gas exploration activity reaches a certain level in a given area, a company leases an additional rig.  The lease cost of the rigs is a step cost.

B) When ten nurses are added to a shift, a nursing supervisor is also added to the shift.  The salaries of the nursing supervisors are a step cost.

C) When a telemarketing company adds ten workers to a shift, a supervisor is also added to the shift.  The salaries of the supervisors are a step cost.

D) When a manufacturing company ceases production, a skeleton crew of maintenance workers continues to work, but the rest are terminated.  When production resumes, maintenance workers are rehired in direct proportion to the amount of production.  The wages of the maintenance workers are a step cost.

15) Salaries of the telemarketers are set at $10,000 per month.  The telemarketers also receive a commission for each donation they receive.  They receive $5 per donation.  The telemarketers salaries’ and commission is a ________ cost.

A) fixed

B) variable

C) mixed

D) step

16) A compensation plan where the sales force is paid salary plus commission is a ________.

A) purely variable cost

B) mixed cost

C) step cost

D) fixed cost

17) Knowledge about relationships between costs and cost drivers is useful for managers to ________.

A) plan controls

B) provide feedback to managers

C) make decisions about the most efficient use of resources

D) all of the above

18) Understanding the relationship between costs and their cost drivers allows managers in all types of organizations to make proper short-run marketing decisions.

19) Measurement of cost behavior means understanding and quantifying how activities of an organization affect its level of costs.

20) Volume-driven costs can be easily traced to products or services. is an online academic writing platform that provides extensive assistance to graduate school students as they work through their research projects, papers and dissertations. gives students access to experienced professionals who can provide the help they need in a timely and efficient manner. The service offers a wide range of services, including editing, proofreading, formatting, researching and more that can give students the confidence they need to write the perfect paper or dissertation for their chosen subject matter.

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