WorksheetsBASIC COST CONCEPT REVIEW PART 3
Total questions: 10
Worksheet time: 3mins
mixed cost is also known as
step fixed cost
discretionary cost
semi variable cost
committed fixed cost
Which of the following cost estimation methods relies only on two data points?
account analysis
high-low method
scattergraph
least square regression method
Which of the following statements is correct?
variable costs are constant on a per-unit basis and are constant in total as activity changes
Fixed costs are constant on a per-unit basis and change in total as activity changes
Fixed costs are constant on a per-unit basis and constant in total as activity changes
variable costs are constant on a per-unit basis and changes in total as activity changes
The variable cost graph appear as
vertical line
a horizontal line
a diagonal line that slopes downward to the right
a diagonal line that slopes upward to the right
Calamansi Company recently conducted a least squares regression analysis to predict selling expenses. The company has constructed the following regression equation: Y = 500,000 + 8X. Which of the following statements is incorrect if the primary cost driver is the number of units sold?
X represents the number of hours worked during the period
For each unit sold, total selling expenses will increase by 8.00
The company anticipates 500,000 of fixed selling expenses
Y represent total selling expenses
the relationship between cost and activity is termed
cost analysis
cost estimation
cost behavior
cost approximation
Which of the following would not be classified as product cost?
insurance on factory plant
salesman commission
direct labor
indirect labor
Which of the following costs is a mixed cost?
electricity cost of P1.00 per kilowatt hour
rental cost of P10,000 per month plus 2 machine hours
straight-line depreciation on factory machines
salary of factory supervisor
The accounting records of Text Corporation revealed the following: direct materials used, P750,000; direct labor, P1,275,000; factory overhead, P1,125,000; and selling and administrative expenses, P660,000. Text product cost total?
2,490,000
3,150,000
3,810,000
2,685,000
The accounting records of Text Corporation revealed the following: direct materials used, P750,000; direct labor, P1,275,000; factory overhead, P1,125,000; and selling and administrative expenses, P660,000. Text's total period cost
660,000
3,810,000
1,410,000
2,685,000
