This quiz works best with JavaScript enabled. Home > Cost Accounting > Cost Behaviors > Cost Behaviors – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Behaviors Quiz 1 (20 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 24920. D) RM 42845. Show Answer Correct Answer: D) 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) Fixed Cost. B) Variable Cost. C) Period cost. D) Overhead Cost. Show Answer Correct Answer: B) Variable Cost. 3. The rent of a factory is classified as a (n) A) Direct Labour. B) Indirect Expense. C) Direct Expense. D) Indirect Material. Show Answer Correct Answer: B) Indirect Expense. 4. When there is no production, the total mixed cost is equal to ..... A) Direct cost. B) Variable cost. C) Indirect cost. D) Fixed cost. Show Answer Correct Answer: D) 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) Number of raw material ordered. D) Labour hours worked. Show Answer Correct Answer: D) 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) Overheads. C) Fixed. D) Relevant. Show Answer Correct Answer: A) Variable. 10. Which of the following is the least likely to be a fixed cost? A) Utilities. B) Executive management salaries. C) Advertising. D) Copier maintenance. Show Answer Correct Answer: A) 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) RM1.25/unit. B) RM1.50/unit. C) RM1.33/unit. D) RM0.75/unit. Show Answer Correct Answer: D) 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 Labour. B) Indirect Expense. C) Direct Labour. D) Direct Expense. Show Answer Correct Answer: A) Indirect Labour. 14. Variable overhead ..... A) Remains constant per unit. B) Remains varies per unit. C) Remains constant in total cost. D) Remains varies in total cost. Show Answer Correct Answer: A) Remains constant per unit. 15. Costs that remain the same in total regardless of changes in the activity level. A) Variable Cost. B) Fixed Cost. C) Relevant Cost. D) Sunk Cost. Show Answer Correct Answer: B) 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) Direct material. B) Direct labor. C) Factory rental. D) Sales commission. Show Answer Correct Answer: C) 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) $ 1, 000. B) $ 11, 000. C) $ 12, 000. D) $ 22, 000. Show Answer Correct Answer: C) $ 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) RM15, 000. B) RM23, 000. C) RM40, 000. D) RM55, 000. Show Answer Correct Answer: D) RM55, 000. 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