AAT L3 Management Accounting Techniques Chp1 recap

What type of responsibility centre measures sales revenue?

• Cost centre

• Profit centre

• Revenue centre

• Investment centre

What type of responsibility centre measures costs?

• Cost centre

• Profit centre

• Revenue centre

• Investment centre

What type of responsibility centre measures costs charged and revenue generated?

• Cost centre

• Profit centre

• Revenue centre

• Investment centre

What type of responsibility centre compares profit with the amount of money invested?

• Cost centre

• Profit centre

• Revenue centre

• Investment centre

What is a cost that can be identified directly with each unit of output?

• Direct cost

• Indirect cost (overhead)

What is a cost that cannot be identified directly with each unit of output?

• Direct cost

• Indirect cost (overhead)

What type of cost is fixed but then changes all at once?

• Fixed cost

• Semi-variable cost

• Stepped fixed cost

• Variable cost

What type of cost varies with levels of output?

• Fixed cost

• Semi-variable cost

• Stepped fixed cost

• Variable cost

What type of cost remains fixed over a range of output levels?

• Fixed cost

• Semi-variable cost

• Stepped fixed cost

• Variable cost

What type of cost combines a fixed and variable element?

• Fixed cost

• Semi-variable cost

• Stepped fixed cost

• Variable cost