accounting test final2 An expense such as advertising could be considered a discretionary fixed cost The variable cost per unit of activity increases as activity increases Total mixed costs increase as volume increases because of the variable cost component Fixed cost that are the result of pervious management decisions that current managers have no control over in the short run are called ________ fixed costs

1. True

An expense such as advertising could be considered a discretionary fixed cost

2. False

The variable cost per unit of activity increases as activity increases

3. True

Total mixed costs increase as volume increases because of the variable cost component

4. Committed

Fixed cost that are the result of pervious management decisions that current managers have no control over in the short run are called ________ fixed costs.

5. $2.08/unit

Total fixed costs for Taylor Inc are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is