This quiz works best with JavaScript enabled. Home > Cost Accounting > Cost Behaviors > Cost Behaviors – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Cost Behaviors Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following is assumptions in Cost Volume Profit (CVP) analysis EXCEPT A) Fixed cost and variable cost can be identified. B) Units of sales equals to unit of production. C) Costs and revenues are linear. D) Selling price per unit always changed. Show Answer Correct Answer: D) Selling price per unit always changed. 2. Total cost($ ):250k, 312k, 400kActivity level(unit):5k, 7.5k, 10kUsing the high-low method, what is the variable cost per unit? A) $ 25. B) $ 30. C) $ 32. D) $ 100. Show Answer Correct Answer: B) $ 30. 3. Identify mixed cost 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. 4. When a cost changes in total in direct proportion to changes in volume/unit, 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. 5. In the linear equation y=a+bx, what is the variable cost per unit? A) Y. B) A. C) B. D) X. Show Answer Correct Answer: B) A. 6. Teak Furniture Corporation incurred the following costs. Wood used in the production of furniture ..... A) Variable cost. B) Mixed cost. C) Fixed cost. D) Fixed asset. Show Answer Correct Answer: A) Variable cost. 7. At break-even point (BEP) A) Profit = Sales > Expenses. B) Profit = Sales < Expenses. C) Profit = RM0. D) Profit = Variable Cost + Fixed Cost. Show Answer Correct Answer: C) Profit = RM0. 8. Fixed costs are conventionally deemed to be which of the following? A) Constant per unit of output. B) Constant in total when production volume changes. C) Outside the control of management. D) Easily controlled. Show Answer Correct Answer: B) Constant in total when production volume changes. 9. As volume/unit 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. 10. ..... is constant regardless of activity level, variable costs change proportionately with output and mixed costs are a combination of both. A) A fixed cost. B) A variable cost. C) A mix cost. D) A stepped fixed cost. Show Answer Correct Answer: A) A fixed cost. 11. Cost-volume-profit analysis assumes that over the relevant range, total A) Revenues are linear. B) Costs are unchanged. C) Variable costs are nonlinear. D) Fixed costs are nonlinear. Show Answer Correct Answer: A) Revenues are linear. 12. Break-even point (BEP) is the situation where A) Revenue > Cost. B) Revenue < Cost. C) Revenue = Cost. D) Revenue-Cost. Show Answer Correct Answer: C) Revenue = Cost. 13. When there is no production, the total manufacturing cost is equal to ..... A) Fixed cost. B) Variable cost. C) Direct cost. D) Manufacturing cost. Show Answer Correct Answer: A) Fixed cost. 14. Contribution Margin: A) Is revenue remaining after deducting variable costs. B) May be expressed as contribution margin per unit. C) Is selling price less cost of goods sold. D) Both (a) and (b) above. Show Answer Correct Answer: D) Both (a) and (b) above. 15. Cost behavior analysis is a study of how a firm's costs A) Relate to competitors' cost. B) Relate to general price level changes. C) Respond to changes in the level of business activity. D) Respond to changes in the gross national product. Show Answer Correct Answer: C) Respond to changes in the level of business activity. 16. When level of activity on cost unit increase, variable cost per unit ..... A) Also increase. B) Remain constant. C) Decrease. D) None of above. Show Answer Correct Answer: B) Remain constant. 17. Are costs that vary in total directly and proportionately with changes in the activity level. A) Fixed Cost. B) Variable Cost. C) Mixed Cost. D) Irrelevant Cost. Show Answer Correct Answer: B) Variable Cost. 18. Mixed costs consist of: A) Variable cost element and a fixed cost element. B) Fixed cost element and a controllable cost element. C) Relevant cost element and a controllable cost element. D) Variable cost element and a relevant cost element. Show Answer Correct Answer: A) Variable cost element and a fixed cost element. 19. Fixed cost, variable cost and mixed cost are which classification of cost? A) Cost function. B) Cost behaviour. C) Nature of expense. D) Production process. Show Answer Correct Answer: B) Cost behaviour. 20. As volume changes, which of these costs could be considered a mixed cost? A) Sales commission expense. B) Assembly line labor. C) Salaries of the accountant. D) Utilities at the manufacturing plant. Show Answer Correct Answer: D) Utilities at the manufacturing plant. ← PreviousRelated QuizzesCost Accounting QuizzesCost Behaviors Quiz 1Cost Behaviors Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books