Question 1

Which of the following is an example of a fixed cost?

Accepted Answer

A)  power cost in the machining department 
B)  wood in the manufacture of furniture 
C)  labour cost paid on a piece basis 
D)  lease payments on machinery 
A)  power cost in the machining department 
B)  wood in the manufacture of furniture 
C)  labour cost paid on a piece basis 
D)  lease payments on machinery

Question 2

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value and beyond the point that the line becomes parallel to the horizontal axis?

Accepted Answer

A)  total direct material costs 
B)  a consultant paid £100 per hour with a maximum fee of £2,000 
C)  employees who are paid £15 per hour and guaranteed a minimum weekly wage of £300 
D)  rent on exhibit space at a convention 
A)  total direct material costs 
B)  a consultant paid £100 per hour with a maximum fee of £2,000 
C)  employees who are paid £15 per hour and guaranteed a minimum weekly wage of £300 
D)  rent on exhibit space at a convention

Question 3

Which of the following costs is NOT a product cost?

Accepted Answer

A)  rent on an office building 
B)  indirect labour 
C)  repairs on manufacturing equipment 
D)  steel used in inventory items produced 
A)  rent on an office building 
B)  indirect labour 
C)  repairs on manufacturing equipment 
D)  steel used in inventory items produced

Question 4

Direct materials are an example of a

Accepted Answer

A)  fixed cost. 
B)  variable cost. 
C)  step cost. 
D)  mixed cost. 
A)  fixed cost. 
B)  variable cost. 
C)  step cost. 
D)  mixed cost.

Which of the following is an example of a fixed cost?

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value and beyond the point that the line becomes parallel to the horizontal axis?

Which of the following costs is NOT a product cost?

Direct materials are an example of a

Introduction to Management Accounting

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Pricing Decisions and Profitability Analysis

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Management Accounting

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Stocks

The Application of Linear Programming to Management Accounting

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Exam 2: An Introduction to Cost Terms and Concepts

Which of the following is an example of a fixed cost?

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value and beyond the point that the line becomes parallel to the horizontal axis?

Which of the following costs is NOT a product cost?

Direct materials are an example of a

Introduction to Management Accounting

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Pricing Decisions and Profitability Analysis

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Management Accounting

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Stocks

The Application of Linear Programming to Management Accounting

Filters