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WorksheetsCost Behaviour
Total questions: 10
Worksheet time: 6mins
Which of the followings is NOT variable cost?
Direct material
Direct labor
Factory rental
Sales commission
When a cost changes in total in direct proportion to changes in volume/unit, it is
a semi-variable cost
a mixed cost
a variable cost
a fixed cost
As volume/unit decreases, total fixed costs
are constant and cost per unit decreases
are constant and cost per unit increases
increase
decrease
examples related to mixed cost
maintaenance cost
utility costs
monthly telephone expenses
examples related to the fixed cost
salesmen commission
rental of factory
wages for production line
Telephone expenses
variable costs are...
costs that remain the same in total regardless of changes in the activity level
costs that contain both a variable costs and fixed cost element
costs that vary in total directly and proportionately with changes in the activity level
