This quiz works best with JavaScript enabled. Home > Cost Accounting > Cost Behaviors > Cost Behaviors – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Behaviors Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. Which of the following terms is used to denote the response of a cost to the change in business activity? A) Cost behavior. B) Cost trend. C) Cost response. D) Cost accumulation. Show Answer Correct Answer: A) Cost behavior. 4. 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. 5. 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. 6. 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) 0.43. B) 0.35. C) 0.75. D) 0.12. Show Answer Correct Answer: A) 0.43. 7. Straight-line depreciation on factory building. A) Variable cost. B) Mixed cost. C) Fixed cost. D) Period cost. Show Answer Correct Answer: C) Fixed cost. 8. When a cost changes in total in direct proportion to changes in volume it is A) A semi-variable cost. B) A mixed cost. C) A variable cost. D) A fixed cost. Show Answer Correct Answer: C) A variable cost. 9. 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) 2.85. B) £ 5.60. C) £ 10, 000. D) £ 4.00. Show Answer Correct Answer: C) £ 10, 000. 10. 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). 11. Variable costs are ..... A) Costs that remain the same in total regardless of changes in the activity level. B) Costs that contain both a variable costs and fixed cost element. C) Costs that vary in total directly and proportionately with changes in the activity level. D) None of above. Show Answer Correct Answer: C) Costs that vary in total directly and proportionately with changes in the activity level. 12. If a firm increases its activity level, A) Costs should remain the same. B) Most costs will rise. C) No costs will remain the same. D) Some costs will change, others will remain the same. Show Answer Correct Answer: D) Some costs will change, others will remain the same. 13. As volume decrease, total fixed cost ..... A) Are constant and cost per unit decreases. B) Are constant and cost per unit increase. C) Increase. D) Decrease. Show Answer Correct Answer: B) Are constant and cost per unit increase. 14. As volume decreases, total fixed costs A) Are constant and cost per unit decreases. B) Are constant and cost per unit increases. C) Increase. D) Decrease. Show Answer Correct Answer: B) Are constant and cost per unit increases. 15. FIND THE VARIABLE COST PER UNIT:at 4, 000 units total cost = £ 31, 000at 5, 500 units total cost = 340, 000 A) £ 9, 000. B) 1, 500 units. C) £ 6.00 per unit. D) £ 26.66. Show Answer Correct Answer: C) £ 6.00 per unit. 16. Below is the method used to segregate mixed cost, except ..... A) High-low activity. B) Graph. C) Simple regression. D) Cost volume profit analysis. Show Answer Correct Answer: D) Cost volume profit analysis. 17. THE PRODUCTION LEVEL IS 35000 unitsdirect raw material= RM 109000direct labour =RM 83000indirect wages = RM 3000factory's electric = RM 9000determine the cost function A) Y = RM 3000 + RM 5.47x. B) Y = RM 3000 + RM 5.74 x. C) Y = RM 12000 + RM 5.48 x. D) None of above. Show Answer Correct Answer: B) Y = RM 3000 + RM 5.74 x. 18. Examples related to the fixed cost A) Supervisor salary. B) Rental of truck. C) Wages for production line. D) None of above. Show Answer Correct Answer: C) Wages for production line. 19. The direct cost is classified as a (n) A) Fixed cost. B) Variable cost. C) Mixed cost. D) Manufacturing overhead cost. Show Answer Correct Answer: B) Variable cost. 20. Fixed costs per unit A) Changes over time. B) Always fixed. C) Always variable. D) Mixed of variable and fixed costs. Show Answer Correct Answer: C) Always variable. ← PreviousNext →Related QuizzesCost Accounting QuizzesCost Behaviors Quiz 1Cost Behaviors Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books