Manufacturing Economy Chapter 2

Given Variable cost is RM50 and Total Cost is RM200. Determine the Fixed Cost (FC). * (Formula) TC = FC + VC

• RM150

• RM75

• RM145

• RM48

Total cost (TC) = Fixed Cost (FC) + Variable Cost (VC) Given fixed cost = Rm 107, variable cost = Rm 80 Determine the total cost

• RM187

• RM119

• RM186

• RM179

What is total revenue?

• the overall cost of production,

• Total amount of money a business has generated over a set period of time

• planning and controlling general

• marketing or selling overheads.

What is the definition of variable cost?

• The costs which do not change for a given periods in spite of change in volume of production.

• The cost of materials that become a major part of the finished product.

• These vary directly and proportionately with output. There is a constant ratio between the change in the cost and change in the level of output.

• The labor associated with workers who are engaged in the production process.

Which of the answers is fixed cost?

• Raw Materials

• Worker's Salary

• Land Rental

• Ultilities Bills

what cost other than variable and fixed cost?

• Salary Cost

• Utilities Cost

• Non Production Cost

• Electricity Cost

Which is an example of variable cost?

• Raw Material, Land rental & Ultilities bills

• Raw Material, Tax & Insurance & Ultilities bills

• Raw Material, Operator Salaries, Ultilities bills

• Raw Material, Land rental & Machine

What is the definition of fixed cost in manufacturing economy?

• constant ratio between the change in the cost and change in the level of output.

• the costs which do not change for a given periods in spite of change in volume of production.

• amount resources sacrificed or given up to achieve a specific objective which may be the acquisition of goods or services.

• Control of costs incurred in line with the planning

In a manufacturing economy, which of the following factors could potentially lead to an increase in total revenue for a company?

• An increase in production costs

• A decrease in the selling price of the products

• A rise in consumer demand for the company's products

• A decrease in the number of employees

How do you calculate fixed costs in a business?

• By dividing total costs by the number of units produced

• By subtracting variable costs from total costs

• By adding all expenses related to production

• By identifying costs that remain constant regardless of production levels