Understanding Cost Behavior

What are the three main types of cost behavior discussed in the video?

• Fixed, Variable, and Semi-variable

• Direct, Indirect, and Overhead

• Fixed, Direct, and Indirect

• Material, Labor, and Overhead

In the context of a mobile phone contract, what type of cost is a fixed monthly fee for unlimited usage?

• Direct Cost

• Semi-variable Cost

• Fixed Cost

• Variable Cost

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

• Wages

• Council tax

• Raw materials

• Electricity bill

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

• £6,000

• £4,000

• £8,000

• £10,000

How do you calculate the cost per unit if the total production cost is £6,000 for 200 units?

• Subtract 200 from £6,000

• Add £6,000 to 200

• Divide £6,000 by 200

• Multiply £6,000 by 200

What is the total production cost for 400 units if the variable cost is £20 per unit and fixed costs are £2,000?

• £10,000

• £8,000

• £12,000

• £14,000

In the activity, what type of cost is identified when both fixed and variable elements are present?

• Direct Cost

• Variable Cost

• Fixed Cost

• Semi-variable Cost

If the cost per unit remains constant regardless of the number of units produced, what type of cost is it?

• Indirect Cost

• Semi-variable Cost

• Fixed Cost

• Variable Cost

What happens to the unit price of a fixed cost as production increases?

• It increases

• It fluctuates randomly

• It remains constant

• It decreases

Which cost type is characterized by a constant total cost regardless of production levels?

• Fixed Cost

• Direct Cost

• Variable Cost

• Semi-variable Cost