Unit 3. Transport companies activity cost

Profitability threshold is the amount that:

• Covers fixed costs

• Covers variable costs

• Covers both fixed and variable costs

Which of the following is NOT a fixed cost?

• Rent

• Gas

• Insurance

Costs that depends on the work flow is:

(a)  

Monetary transaction from our company:

• Payment

• Expenses

• Cost

The money collection from your client is an:

• Investment

• Payment

• Income

Direct costs can be

• Only fixed cost

• Only variable cost

• Both fixed and variable costs

Adding benefits and amortization results in:

(a)  

Amortization cost depens on:

• Work done

• Obsolence

• Both answers are correct

Amortization method of constant percentage

• Applies equal portions

• Applies higher portions at the beginning

• Applies lower portions at the beginning

Marketing, advertising, cleaning services, office supplies are (a)   costs