This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Cost Behaviors > Cost Behaviors – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Behaviors Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Cost of 8000 pieces of chicken spicesDirect materials = RM 6000Direct labor = RM5600Rental of truck = RM 7500Depreciation of factory = RM2800Supervisor's salary = RM 3000calculate the total cost for 15500 pieces of chicken spices A) RM 42690. B) RM 35775. C) RM 42845. D) RM 24920. Show Answer Correct Answer: C) RM 42845. 2. Which of the following is a cost that changes in total volume proportionate to the changes in the volume of activity? A) Period cost. B) Overhead Cost. C) Fixed Cost. D) Variable Cost. Show Answer Correct Answer: D) Variable Cost. 3. The rent of a factory is classified as a (n) A) Direct Expense. B) Direct Labour. C) Indirect Expense. D) Indirect Material. Show Answer Correct Answer: C) Indirect Expense. 4. When there is no production, the total mixed cost is equal to ..... A) Indirect cost. B) Fixed cost. C) Variable cost. D) Direct cost. Show Answer Correct Answer: B) Fixed cost. 5. When no production occured, this item total cost equal to zero. A) Mixed cost. B) Fixed cost. C) Variable cost. D) Indirect cost. Show Answer Correct Answer: C) Variable cost. 6. Cost behavior analysis is related to A) How costs change as new products are introduced. B) How costs change as output changes. C) How costs change over time, trending up or down. D) All of the above. Show Answer Correct Answer: B) How costs change as output changes. 7. Which one is the MOST suitable cost driver for total direct labor cost? A) Machine hour. B) Number of return of goods. C) Labour hours worked. D) Number of raw material ordered. Show Answer Correct Answer: C) Labour hours worked. 8. At the break-even point, the contribution margin equals total A) Variable costs. B) Sales Revenue. C) Selling and Administrative costs. D) Fixed costs. Show Answer Correct Answer: D) Fixed costs. 9. Which of the following types of cost are assumed to stay the same per unit, irrespective of the volume of output? A) Variable. B) Fixed. C) Relevant. D) Overheads. Show Answer Correct Answer: A) Variable. 10. Which of the following is the least likely to be a fixed cost? A) Copier maintenance. B) Executive management salaries. C) Advertising. D) Utilities. Show Answer Correct Answer: D) Utilities. 11. The following data pertain to activity and utilitiess for two recent years:Year 1 Year 2 8, 000 12, 000 RM12, 000 RM15, 000 Using the high-low method, what is the variable cost per unit for utilities? A) RM1.50/unit. B) RM0.75/unit. C) RM1.33/unit. D) RM1.25/unit. Show Answer Correct Answer: B) RM0.75/unit. 12. Identify semi-variable costs A) Employee paid basic wage plus commission based on production quantity. B) Rent of the factory workshop. C) Print ink used for letterhead and logos. D) None of above. Show Answer Correct Answer: A) Employee paid basic wage plus commission based on production quantity. 13. The wages of a supervisor are treat as which type of cost? A) Indirect Expense. B) Direct Expense. C) Direct Labour. D) Indirect Labour. Show Answer Correct Answer: D) Indirect Labour. 14. Variable overhead ..... A) Remains varies per unit. B) Remains varies in total cost. C) Remains constant in total cost. D) Remains constant per unit. Show Answer Correct Answer: D) Remains constant per unit. 15. Costs that remain the same in total regardless of changes in the activity level. A) Sunk Cost. B) Variable Cost. C) Fixed Cost. D) Relevant Cost. Show Answer Correct Answer: C) Fixed Cost. 16. Utilities expense A) Variable cost. B) Fixed cost. C) Mixed cost. D) None of above. Show Answer Correct Answer: C) Mixed cost. 17. Which of the following states how a variable cost behaves as volume changes? A) Remains constant in total and remains constant per unit. B) Remains constant in total and changes per unit. C) Changes in total and remains constant per unit. D) Changes in total and changes per unit. Show Answer Correct Answer: C) Changes in total and remains constant per unit. 18. Which of the followings is NOT variable cost? A) Factory rental. B) Direct material. C) Sales commission. D) Direct labor. Show Answer Correct Answer: A) Factory rental. 19. Assume that you own your own business and your explicit costs are $ 10, 000 per year. You could earn $ 11, 000 in your next-best alternative job. Your revenue is $ 22, 000 per year. What is your accounting profit? A) $ 22, 000. B) $ 12, 000. C) $ 1, 000. D) $ 11, 000. Show Answer Correct Answer: B) $ 12, 000. 20. Given the cost function, Y=RM15, 000+RM5X, what is the total cost at an activity level of 8, 000 units? A) RM40, 000. B) RM23, 000. C) RM55, 000. D) RM15, 000. Show Answer Correct Answer: C) RM55, 000. 21. Identify fixed costs A) Employee paid basic wage plus commission based on production quantity. B) Rent of the factory workshop. C) Print ink used for letterhead and logos. D) None of above. Show Answer Correct Answer: B) Rent of the factory workshop. 22. A mixed cost consists of A) Both fixed and variable. B) Either fixed or variable. C) Product and period. D) Direct and indirect. Show Answer Correct Answer: A) Both fixed and variable. 23. Which of the following terms is used to denote the response of a cost to the change in business activity? A) Cost response. B) Cost trend. C) Cost behavior. D) Cost accumulation. Show Answer Correct Answer: C) Cost behavior. 24. Identify variable costs A) Employee paid basic wage plus commission based on production quantity. B) Rent of the factory workshop. C) Print ink used for letterhead and logos. D) None of above. Show Answer Correct Answer: C) Print ink used for letterhead and logos. 25. Which of the following would be the least controllable fixed costs? A) Property taxes. B) Rent. C) Research and development. D) Management training programs. Show Answer Correct Answer: A) Property taxes. 26. Last year, Connie's Computers had a revenue of $ 350, 000 and total variable expenses of $ 200, 000. What is Connie's Computer's contribution margin ratio? A) 0.35. B) 0.75. C) 0.43. D) 0.12. Show Answer Correct Answer: C) 0.43. 27. Straight-line depreciation on factory building. A) Mixed cost. B) Period cost. C) Variable cost. D) Fixed cost. Show Answer Correct Answer: D) Fixed cost. 28. When a cost changes in total in direct proportion to changes in volume it is A) A semi-variable cost. B) A variable cost. C) A mixed cost. D) A fixed cost. Show Answer Correct Answer: B) A variable cost. 29. FIND THE TOTAL OF FIXED COST:At 3, 500 units the total cost is £ 24, 000At 6, 000 units the total cost is £ 34, 000 A) £ 10, 000. B) £ 4.00. C) £ 5.60. D) 2.85. Show Answer Correct Answer: A) £ 10, 000. 30. Compute variable cost per unit A) (highest activity-lowest activity) / (highest unit-lowest unit). B) (highest activity cost-lowest activity cost ) / (highest unit-lowest unit). C) (highest activity cost-lowest activity cost ) / (highest activity unit-lowest activity unit). D) None of above. Show Answer Correct Answer: C) (highest activity cost-lowest activity cost ) / (highest activity unit-lowest activity unit). Next →Related QuizzesCost Accounting QuizzesAccounting QuizzesCost Behaviors Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books