2.

Anything for which management wants to accumulate or collect costs is known as a

______________________.

ANS: cost object

DIF: Easy OBJ: 2-1

3. Costs that cannot be conveniently traced to a cost object are known as __________________ costs.

ANS: indirect

4. A cost that remains unchanged in total within the relevant range is known as a _____________ cost.

ANS: fixed

DIF: Easy OBJ: 2-1

5. A cost that varies in total in direct proportion to changes in activity is known as a _______________

cost

ANS: variable

DIF: Easy OBJ: 2-1

6. The assumed range of activity that reflects the company’s normal operating range is referred to as
the

_____________________________.

ANS: relevant range

DIF: Easy OBJ: 2-1

7. A cost that remains constant on a per unit basis within the relevant range is a

________________________ cost.

ANS: variable

DIF: Easy OBJ: 2-1

8. A cost that varies inversely with the level of production is known as a _______________ cost.

ANS: fixed

DIF: Easy OBJ: 2-1

9. A cost that has both fixed and variable components is known as a __________________ cost.

ANS: mixed

DIF: Easy OBJ: 2-1