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WorksheetsQUIZ 1 : TOPIC 3 [COSTS BEHAVIOUR]
Total questions: 20
Worksheet time: 20mins
Fixed costs per unit
changes over time
always fixed
always variable
mixed of variable and fixed costs
Which of the followings is not variable cost
direct material
direct labor
factory rental
wages of production workers
The cost equation Y=a+bX is often used to express cost formulas. Which of the following representations in this equation is correct?
the b term represents variable cost per unit of activity
the a term represents variable cost in total
the X term represents total costs
the Y term represents total fixed costs
What type of cost behaviour does the image represent?
mixed
Variable
Fixed
Stepped
The rent of a factory is classified as a (n)
Direct Labour
Indirect Expense
Direct Expense
Indirect Material
Variable costs are costs that change in direct proportion to the production unit. All direct costs including direct materials, direct labour and direct expenses are variable costs.
True
False
Fixed costs are costs that remain fixed or constant regardless of the changes in production units but within a relevant range. This cost will continue to be incurred even when there is no production.
True
False
variable overhead----
remains constant per unit
remains varies per unit
remains constant in total cost
remains varies in total cost
Are costs that vary in total directly and proportionately with changes in the activity level.
Fixed Cost
Variable Cost
Mixed Cost
Irrelevant Cost
Costs that remain the same in total regardless of changes in the activity level.
Variable Cost
Fixed Cost
Relevant Cost
Sunk Cost
