Quizizz Session 6

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

• Indirect cost

• Variable cost

• Direct cost

• Fixed cost

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

• Fixed cost

• Mixed cost

• Conversion cost

• Variable cost

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

• Cost behavior

• Cost trend

• Cost response

• Cost accumulation

Mixed cost is also known as:

• Double cost

• Semi-variable cost

• Fluctuating cost

• Full

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

A furniture store pays a commission to salespeople based on their sales volume. This cost should be classified as:

• Prime cost

• Conversion cost 

• Selling and administrative expense

• Period cost

The break-even point in units for a company selling products at $10 each with variable cost of $5 per unit and fixed costs of $5,000 is:

• 100 units

• 500 units

• 1,000 units

If a company increases its selling price while keeping its variable cost per unit and fixed costs the same, how would this affect the break-even point and contribution margin per unit? 

•  Break-even point decreases, contribution margin increases. 

• Break-even point increases, contribution margin decreases.

•  Both break-even point and contribution margin increase.

• Both break-even point and contribution margin decrease.

Gossen Company is planning to sell 200,000 pliers for $4 per unit. The contribution margin ratio is 25%. If Gossen will break even at this level of sales, what are the fixed costs?

• $100,000

• $200,000

• $160,000

• $300,000

 IKendra Corporation’s total utility costs during the past year were $1,200 during its highest month and $600 during its lowest month. These costs corresponded with 10,000 units of production during the high month and 2,000 units during the low month. What are the fixed cost and unit variable cost of its utility costs using the high-low method?

•  $0.075 variable and $450 fixed.

•  $0.120 variable and $0 fixed.

• $0.300 variable and $0 fixed.

•  $0.060 variable and $600 fixed