QUIZ 1 : TOPIC 3 [COSTS BEHAVIOUR]

As volume decreases, total fixed costs

• are constant and cost per unit decreases
• are constant and cost per unit increases
• increase
• decrease

Fixed costs per unit

• changes over time

• always fixed

• always variable

• mixed of variable and fixed costs

When a cost changes in total in direct proportion to changes in volume it is

• a semi-variable cost
• a mixed cost
• a variable cost
• a fixed cost

Cost behavior analysis is related to

• how costs change as new products are introduced
• how costs change as output changes
• how costs change over time, trending up or down
• all of the above

A mixed cost consists of 

• both fixed and variable 
• either fixed or variable 
• product and period 
• direct and indirect

Which of the followings is not variable cost

• direct material

• direct labor

• factory rental

• wages of production workers

Which of the following states how a variable cost behaves as volume changes?

• remains constant in total and remains constant per unit
• remains constant in total and changes per unit
• changes in total and remains constant per unit
• changes in total and changes per unit

The cost equation Y=a+bX is often used to express cost formulas. Which of the following representations in this equation is correct?

• the b term represents variable cost per unit of activity

• the a term represents variable cost in total

• the X term represents total costs

• the Y term represents total fixed costs

What type of cost behaviour does the image represent?

• Fixed
• Semi-Variable
• Stepped
• Variable

What type of cost behaviour does the image represent?

• Stepped
• Fixed
• Variable
• Semi-Variable