Traditional income statements are organized by function, not by cost behavior The fixed cost per unit always remains

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Traditional income statements are organized by function, not by cost behavior The fixed cost per unit always remains the same. When graphing total variable costs, the cost line always begins at the origin. The graph for total fixed costs will be a vertical line. The traditional income statement is considered by most companies to be a better management tool than the contribution margin income statement. When graphing total mixed costs, the cost line begins at the origin. Regression analysis uses only two of the historical data points for estimating a cost equation. Within the relevant range, which of the following statements is TRUE with respect to fixed costs per unit? They will remain the same as production levels change. They will decrease as production decreases. They will increase as production increases. They will increase as production decreases. Which of the following would be considered a discretionary fixed cost? Property taxes and insurance Depreciation Employees wages

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Traditional income statements are organized by function, not by cost behavior t The fixed cost per unit always remains the same. f When graphing total variable costs, the cost line always begins at the origin. t The graph for total fixed costs will be a vertical line. f The traditional income statement is considered by most companies to be a better management tool than the contribution margin income statement. f When graphing total mixed costs, the cost line begins at the origin. f Regression analysis uses only two of the historical data points for estimating a cost equation. f Within the relevant range, which of the following statements is TRUE with respect to fixed costs per unit? They will remain the same as production levels change. They will decrease as production decreases. They will increase as production increases. They will increase as production decreases. d Which of the following would be considered a discretionary fixed cost? Property taxes and insurance Depreciation Employees wages Advertising d Which of the following statements is TRUE with respect to total variable costs? They will remain the same as production levels change within the relevant range. They will increase as production decreases within the relevant range. They will decrease as production increases within the relevant range. They will decrease as production decreases within the relevant range. d

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Traditional income statements are organized by function, not by cost behavior The fixed cost per unit always remains the same

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