Question

QUESTION 2

The following are types of costs that react to changes in activity except:

1. 	A.	Fixed
   	B.	Step
   	C.	Unexpired
   	D.	Mixed

  

QUESTION 3

1. Which of the following is true about Variable Cost:

   	A.	The variable total cost remains constant throughout the relevant range.
   	B.	The variable unit cost is varies through the relevant range.
   	C.	The variable unit cost varies inversely with changes in the activity the relevant range.
   	D.	The variable unit cost is constant through the relevant range.

QUESTION 4

1. Prime costs are Direct Labor and _______________.

   	A.	Direct Materials
   	B.	Selling
   	C.	Indirect Labor
   	D.	Factory Overhead

QUESTION 5

1. Cost categories as related to cost objects include Direct and Indirect.

   True

   False

QUESTION 6

1. Meat markets are said to have a ____________ degree of product conversion.

   	A.	High
   	B.	Extremely High
   	C.	Low
   	D.	Moderate

  

Answer 1

Question 2

Correct anwer-----------(A) Fixed

.

Fixed cost do not change with change in activity level.

Question 3

Correct anwer-----------(D) The variable unit cost is constant through the relevant range.

.

Variable cost remains same on per unit level and changes as the activity level change. Variable cost in total increase when activity increase and vice versa.

Question 4

Correct anwer-----------(A) Direct Materials.

Prime cost = Direct material+ direct labor