Escolar Documentos
Profissional Documentos
Cultura Documentos
a) decrease
b) increase
c) we can't tell
d) stay the same
5. Which of the following would not be illustrated by the cost curve shown below?
1
T2 Chapter 10 Majid Ghauri
9. Which of the following costs would be most likely to be illustrated by the cost curve?
2
T2 Chapter 10 Majid Ghauri
11. Which of the following best describes a fixed cost? A cost which:
12. A business's telephone bill should be classified into which one of these categories?
a) Fixed cost
b) Stepped fixed cost
c) Semi-variable cost
d) Variable cost
a) Raw Materials
b) Direct Labor
c) Variable Overhead
d) Fixed Overhead
3
T2 Chapter 10 Majid Ghauri
14. A company makes computers. Which one of the following is likely to be a Variable Cost?
15. A company makes made to measure plastic windows and doors. Which one of the following
is likely to be a Fixed Cost?
16. For a boat building company, which one of the following is an indirect cost to the product?
17. For a plumber that repairs water pipes. Which one of the following is a direct cost to the
service he/she provides to a particular household?
19. Hire of special plant or machinery or total for a particular job is an example of
a) Production overhead
b) Indirect expense
c) Direct expense
d) Indirect expense
4
T2 Chapter 10 Majid Ghauri
20. The difference between selling price and marginal cost is called ___________
a) Cost of goods sold
b) Profit
c) Contribution
d) Break-even point
21. Under marginal costing only ___________ are charged to operations, processes or products
a) Variable cost
b) Fixed cost
c) Period cost
d) None of above
23. At the end of the year, goods that are unsold are deducted from:
a) Finished goods
b) Closing stock
c) Cost of good sold
d) Opening stock
24. The value of finished goods inventory is calculated by which of the following formula?
a) Cost of goods manufactured/ no. of units manufactured
b) Closing finished goods units x cost per unit
c) Cost of goods available for sale x cost per unit
d) None of above
25. Which of the following is the correct formula to calculate cost of sales?
a) Purchases – opening inventory – closing inventory
b) Purchases + opening inventory + closing inventory
c) Purchases – opening inventory + closing inventory
d) Purchases + opening inventory – closing inventory
5
T2 Chapter 10 Majid Ghauri
28. Under Variable Costing accounting, when stocks decrease profits will be
a) Greater than under Absorption Costing accounts
b) Smaller than under Absorption Costing accounts
c) The same
d) We can’t tell
30. Which is the correct equation that calculates P (the net profit)?
Selling Price per unit = £S
Variable Cost per unit = £V
Number of units sold = U units
Total Fixed costs = £F
a) P = SV - F
b) P = U (S – V) - F
c) P = FS - V
d) P = S (V – S)
6
T2 Chapter 10 Majid Ghauri