14. An example of a cost likely to have a mixed behavior pattern is:

A. sales force commission.

B. raw material cost.

C. depreciation of production equipment.

D. electricity cost for the manufacturing plant.

15. The cost of a single unit of production in excess of the breakeven point in units is:

A. its fixed cost and variable cost.

B. its fixed cost only.

C. its variable cost only.

D. none of these.

_16. To which function of management is Cost Volume Profit Analysis most applicable?

A. Planning.

B. Organizing.

C. Directing.

D. Controlling.

Use to information below to answer questions 17 & 18

Selling price per unit $ 100

Variable expenses per unit $ 40 Fixed expenses per month $60,000

17. The break-even point volume of units is:

A. 0

B. 360

C. 720

D. 1000

18. The break-even point in terms of total revenues per month is:

A. $30,000

B. $60,000

C. $75,000

D. $100,000

19. All of the following are characteristics of managerial accounting, except:

A. Reports are used primarily by insiders rather than by persons outside of the business entity.

B. Its purpose is to assist managers in planning and controlling business operations.

C. Information must be developed in conformity with generally accepted accounting principles or
with income tax regulations.

D. Information may be tailored to assist in specific managerial decisions.

20. In comparison with a financial statement prepared in conformity with generally accepted

accounting principles, a managerial accounting report is more likely to:

A. Be used by decision makers outside of the business organization

B. Focus upon the operation results of the most recently completed accounting period.

C. View the entire organization as the reporting entity.

D. Be tailored to the specific needs of an individual decision maker

21. Which of the following provides information that is intended primarily for use by internal

management in decision making required to run the business?