Cost Behavior Quiz

What type of cost changes in total with changes in activity level?

• Fixed cost

• Mixed cost

• Variable cost

• Sunk cost

Which of the following is an example of a cost driver?

• Product color

• Units produced

• Brand value

• Warranty period

A variable cost per unit is:

• Always increasing

• Inversely proportional

• Constant

• Zero

Which cost remains constant in total regardless of activity level?

• Variable

• Mixed

• Fixed

• Marginal

Which type of cost contains both fixed and variable elements?

• Stepped cost

• Mixed cost

• Direct cost

• Opportunity cost

A company incurs RM4,800 in total cost for 600 machine hours and RM6,400 for 900 machine hours. Using the high-low method, what is the variable cost per machine hour?

• RM4.00

• RM5.33

• RM3.20

• RM2.67

The 'relevant range' is best described as:

• The most expensive activity level

• The average cost range

• The activity range where cost behavior assumptions hold

• A forecasted expense zone

In the high-low method, the variable cost per unit is found by:

• Dividing total cost by hours

• Subtracting high from low cost

• Dividing cost change by activity change

• Averaging high and low costs

If total mixed cost = RM1000, fixed cost = RM400, and activity = 300 units, what is the variable cost per unit?

• RM2

• RM3

• RM4

• RM5

Which graph type helps visualize cost behavior patterns?

• Line graph

• Bar chart

• Scattergraph plot

• Pie chart