Managers can influence the amount of fixed and variable costs in a firm through decisions about ________.

A) product attributes

B) capacity level

C) amount of high technology equipment used for manufacturing products

D) all of the above

The use of high technology equipment to manufacture products instead of highly skilled labor usually results in ________.

A) higher discretionary fixed costs

B) higher discretionary variable costs

C) lower risk

D) higher operating leverage

Which of the following costs can be canceled in the short run?

A) salary of CEO of company

B) mortgage payment on factory building

C) lease payments on two-year lease for leased equipment in factory

D) management consulting services engaged to change company logo

A hospital adds a new addition and needs to acquire some new equipment for the addition. The cost driver for the equipment is patient-days per month. The new addition increases the patient-days per month outside the relevant range. What type of equipment costs will change as a result of the addition?

A) discretionary fixed costs

B) discretionary variable costs

C) committed fixed costs

D) committed variable costs

Which of the following is an example of a strategic management decision that uses cost information?

A) determining the ending balance of Merchandise Inventory for financial reporting to external users

B) determining the product mix

C) assessing a cost control program in a factory

Historical or past information has no ________ bearing on a decision made by management. Historical or past information can have a(n) ________ bearing on a decision made by management.

A) indirect; direct

B) direct; indirect

C) measurable; material

D) material; significant

When managers make decisions, the accountant's primary role is ________.

A) making the decision

B) providing information that may be useful to the manager

C) uncertain because it depends on the decision being made

D) uncertain because it depends on the manager