Reference no: EM132614707

Problem 1: A cost that remains unchanged in total as the activity level (or cost driver) changes is called a:

Select one:

Option 1: variable cost.

Option 2: step-fixed cost.

Option 3: step-variable cost.

Option 4: fixed cost.

Problem 2: The relationship between cost and activity is called:

Select one:

Option 1: cost prediction.

Option 2: cost approximation.

Option 3: cost behaviour.

Option 4: cost analysis.

Problem 3: A cost that changes in total in direct proportion to a change in the cost driver is a:

Select one:

Option 1: semi-variable cost.

Option 2: step-variable cost.

Option 3: fixed cost.

Option 4: variable cost.

Problem 4: The fixed costs per unit are $10 when a company makes 10,000 units. What are the per unit fixed costs when 12,500 units are produced?

Select one:

Option 1: $12.00

Option 2: $8.00

Option 3: $10.00

Option 4: $6.00

Problem 5: Total costs are $140,000 when 10,000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8,000 units are produced?

Select one:

Option 1: $140,000

Option 2: $136,000

Option 3: $132,000

Option 4: $124,000