Understanding Cost Behavior

Understanding Cost Behavior

Assessment

Interactive Video

Business

9th - 10th Grade

Practice Problem

Hard

Created by

Jennifer Brown

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary focus when analyzing cost behavior in a manufacturing business?

Changes in the number of employees

Changes in the quantity of items produced

Changes in the marketing strategy

Changes in the company's location

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

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

Wages for hourly workers

Raw materials

Mobile phone contract with unlimited usage

Electricity bill

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do variable costs behave in relation to production levels?

They increase as production increases

They fluctuate randomly

They decrease as production increases

They remain constant

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What characterizes a semi-variable cost?

It has both fixed and variable components

It is entirely variable

It is entirely fixed

It changes unpredictably

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the context of electricity costs, what is the fixed component?

The price per unit of electricity

The standing charge

The total monthly bill

The cost of electrical appliances

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a company produces 200 units with a variable cost of £20 per unit and fixed costs of £2,000, what is the total production cost?

£4,000

£6,000

£8,000

£10,000

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the unit cost if the total production cost is £6,000 for 200 units?

£25

£30

£20

£35

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