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WorksheetsCost Volume Profit Analysis -Part 1(Cost Behaviour)
Total questions: 10
Worksheet time: 5mins
Cost behavior analysis is related to
how costs change as new products are introduced
how costs change as output changes
how costs change over time, trending up or down
all about costs
Variable costs are costs that:
vary in total directly and proportionately with changes in the activity level.
remain the same per unit at every activity level.
remain in total directly and proportionately with changes in the activity level.
Mixed costs consist of :
variable cost element and a fixed cost element.
fixed cost element and a controllable cost element.
relevant cost element and a controllable cost element.
variable cost element and a relevant cost element.
Which of the following is a cost that changes in total volume proportionate to the changes in the volume of activity?
Fixed Cost
Variable Cost
Period cost
Overhead Cost
As volume decrease, total fixed cost ....
are constant and cost per unit decreases
are constant and cost per unit increase
increase
decrease
Since Tasty Bread is open 24 hours a day, its bread oven is constantly on and is, therefore, always using natural gas. However, when there is no bread in the oven, the oven automatically lowers its flame and reduces its natural gas usage by 70%. The cost of natural gas would best be described as a:
fixed cost
mixed cost
variable cost
period cost
Teak Furniture Corporation incurred the following costs. Wood used in the production of furniture........
variable cost
mixed cost
fixed cost
fixed asset
Straight-line depreciation on factory building.
variable cost
mixed cost
fixed cost
period cost
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' represents variable cost per unit of activity.
The 'a' represents variable cost in total.
The 'x' term represents total costs
The 'Y' term represents total fixed costs
Utilities expense
variable cost
fixed cost
mixed cost
