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WorksheetsAAT L2 Cost Behaviour
Total questions: 10
Worksheet time: 10mins
Variable Cost is a cost that changes in proportion to the level of output or activity. (a)
Fixed cost is a cost that does alter in total when the level of output or activity changes. (a)
Semi-variable cost, is a cost that contains both a fixed element and a variable element. (a)
Identify fixed costs
Employee paid basic wage plus commission based on production quantity
rent of the factory workshop
print ink used for letterhead and logos
Identify semi-variable costs
Employee paid basic wage plus commission based on production quantity
rent of the factory workshop
print ink used for letterhead and logos
Identify variable costs
Employee paid basic wage plus commission based on production quantity
rent of the factory workshop
print ink used for letterhead and logos
CALCULATE THE FIXED COST PER ITEM:
Munich Ltd makes outdoor gym equipment. It incurs fixed costs of £50,000 per year in relation to the manufacture of its outdoor treadmills. Calculate the fixed cost per treadmill at 25,000 output level.
fixed cost per treadmill £50
fixed cost per treadmill £5
fixed cost per treadmill £2
fixed cost per treadmill £0.50
CALCULATE THE TOTAL VARIABLE COST PER ITEM:
Munich Ltd also incurs £35 per treadmill for variable costs in manufacturing the treadmills. Calculate the total variable cost for the treadmills, at output levels of 1,000 and 25,0000 units.
£350,000 and £87,500
£35,000 and £875,000
Methods of absorption used in businesses include:
units of output method
alpha-numeric method
direct labour hours method
machine hours method
investment method
Which cost is associated with - Profit centre
Selling and marketing the products in a retail shop
Mixing, filling and packing the sausages
Storage in freezers in the warehouse
