Show the example of a variable cost

Assignment Help Financial Accounting

Reference no: EM1311695

Multiple choice questions on variable costs.

Fixed Costs and Variable Costs:
1. Which of the following is an example of a variable cost?

a.Insurance premium for fire insurance on the factory building
b.The salary of the company president
c.Wood used to make custom tables
d.Rent for use of a storage warehouse
e.Depreciation on the factory building

2. Which one of the following statements best explains why companies want to distinguish between direct and indirect costs?

a.To evaluate business segments on the basis of only those costs directly traceable to each segment
b.To better determine whether a company is a large organization or a small organization
c.To determine the sales prices necessary to break even
d.To better distinguish between variable and fixed costs for each product
e.To better distinguish between materials costs and labor costs

Reference no: EM1311695

Questions Cloud

Extimate the thickness of the glass at fifth bright fringe : Extimate the thickness of a glass at a bright fringe and the Brewster's angle for light traveling from air to glass.

How much thermal energy is produced in the collision : A tow truck pulls a car 5.2 km along a horizontal roadway using a cable having a tension of 790.

Maximum amount you will pay for the new process : Illustrate what is the maximum amount you will pay for the new process. Suppose that the new process must pay for itself by the end of the first year.

Discrepancy from null hypothesis : In 1965, a newspaper carried a story about a high school student who reported getting 9207 heads and 8743 tails in 17,950 coin tosses. Is this a significant discrepancy from the null hypothesis H 0 = 1/2.

Show the example of a variable cost : Which of the following is an example of a variable cost and Which one of the following statements best explains why companies want to distinguish between direct and indirect costs

Determining arithmetic mean-simplest measure of dispersion : For value 10,40,20,50 and 40, value of arithmetic mean is? Simplest measure of dispersion is the Standard deviation, variance, Quartile deviation.

What mass can support in water before sinking : A 12.0 kg box resting on the horizontal, frictionless surface is attached to a 5.00 kg weight by a thin, light wire that passes without slippage over the frictionless pulley. The pulley has the shape of the uniform solid disk of mass 2.10kg and diame..

Standard error and the probability of range of sample : The average weekly earnings of bus drivers in a city are $950 with a standard deviation of $45. Assume that we select a random sample of 81 bus drivers.

Computation of present value of medical research corporation : Computation of Present value of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis

User Account

All Pages