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1. All other things the same, an increase in total fixed expenses will increase the break-even point. True False True False True False True False True False 2. All other things the same, an increase in variable expense per unit will reduce the break-even point. 3. The margin of safety in dollars equals the excess of actual sales over budgeted sales. 4. In traditional costing, some manufacturing costs may be excluded from product costs. 5. In activity-based costing, some manufacturing costs can be excluded from product costs. 6. Batch-level activities are performed each time a unit is produced. 7. Fixed costs per unit decrease as production levels decrease. 8. Unfavorable variances are subtracted from each other to arrive at a favorable variance. 9. A direct labor efficiency variance is favorable if laborers actually work more hours than the flexible budget True False True False True False calls for to produce the actual quantity of output 10. A direct labor cost variance is unfavorable if the employer pays workers more per hour than budgeted. True False True False 11. Which of the following is a variable cost? A. property taxes B. salary of plant manager C. direct materials cost D. straight-line depreciation expenses 12. Which of the following costs does not change in total despite changes in volume within the relevant range? A. fixed costs B. variable costs C. mixed costs D. total production costs

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