Introduction to cost accounting

Cost unit is

• Any activity or factor that causes costs to be incurred

• a quantitative unit of product or service in which costs are ascertained

• A location or function of an organization in respect of which costs are ascertained

• Amount expenditure incurred on specified cost object

Fixed cost and variable cost are which classification of cost?

• Cost function

• Cost behaviour

• Nature of expense

• Production process

Which one is the MOST suitable cost driver for total labor cost?

• Machine hour

• Number of return of goods

• Number of raw material ordered

• Labour hours worked

Which ONE is PRODUCTION OVERHEAD Cost?

• administrative salary

• Salesman Commission

• Indirect labour

• Office Utilities

Total variable cost increases as level of activity increases

• TRUE

• FALSE

Total variable cost per unit decrease as volume of output increases

• TRUE

• FALSE

Total fixed cost remain constant as volume of output increases

• TRUE

• FALSE

A cost which is unaffected in total by increases or decreases in the volume of output is called

• stepped-cost

• Variable cost

• Semi-variable

• Fixed cost

Which one of the following is an example of a mixed cost?

• Factory rent

• Salaries

• Telephone bills

• Straight line depreciation

If Fixed cost is RM1000, Variable Cost per unit is RM1.35, how much total cost if unit produced is 1500 units?

Evaluate responses using AI:

OFF