Session 02 - MA

A cost that is easily traceable to a cost object is known as:

• indirect cost

• direct cost

• variable cost

• fixed cost

A cost that is not easily or conveniently traceable to a cost object is known as:

• indirect cost

• direct cost

• variable cost

• fixed cost

Which of the following terms is used to denote the response of a cost to the change in business activity?

• Cost Behaviour

• Cost Trend

• Cost Response

• Cost Accumulation

A cost that changes in total dollar amount with the change in the level of activity is known as:

• Fixed Cost

• Conversion Cost

• Mixed Cost

• Variable Cost

A cost that does not change, in total, with the change in activity is called:

• Mixed Cost

• Variable Cost

• Fixed Cost

• Unchanged Cost

According to cost formula Y = $20,000 + $4X, total cost at an activity level of 15,000 units would be:

• $20,000

• $60,000

• $80,000

• $35,000

Which of the following costs is not a product cost?

• Depreciation on the plant installed in the factory

• The electricity cost of the office of factory foreman

• The cost of shipping finished products to customers

• The cost of fuel used in the factory

The costs incurred to acquire or manufacture a product is known as:

• Period Costs

• Product Costs

• Administration Costs

• Real Costs

Prime cost = ?

• Manufacturing overhead cost + Direct labor cost

• Direct materials cost + Direct labor cost

• Direct materials cost + Manufacturing overhead cost

• Direct materials cost + Direct labor cost + Manufacturing overhead cost

Conversion cost = ?

• Direct labor cost + Manufacturing overhead cost

• Direct materials cost + Manufacturing overhead cost

• Direct materials cost + Admin. cost

• Direct materials cost + Marketing cost