Question

12. Costs that change abruptby at intervals of activity because the resources and their cost come D. Step costs t.3. Which of the following terms appears on an income statement prepared using the approach but not on an income statement using absorption costing: ing income B. Gross profit C. Contribution margin D. Sales 14. Activities that affect costs are often called A. Cost drivers B. Stages of production C. Fixed activities D. Variable activities 15. At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled s20,800. If 16,000 units are produced and this activity is within the relevant range, then: A. total cost would equal $89,280. B. total unit cost would equal $4.80 C. fixed cost per unit would equal $5.58. D. total costs would equal $55,800. 16. A property tax is an example ofa A. mixed cost B committed fixed cost. C discretionary cost D. engineered cost.

Answer 1

Q11.
Answer is C straight line depreciation for factory building
Q12.
Answer is D. Step cost
Q13.
Answer is C. contribution margin
Q14.
Answer is A. Cost drivers
Q15.
Answer is B. Total unit cost would be $ 4.80
Explanation:
Variable (35000/10000*16000):			56000
Fixed			20800
Total cost			76800
Divide: Units			16000
Cost per unit			4.8
Q16.
Answer is B. Committed Fixed cost