Reference no: EM132614700

Question 1: Which of the following statements is true? A cost is:

Select one:

Option 1: either an expense or an asset.

Option 2: always an asset.

Option 3: always a liability.

Option 4: always an expense.

Question 2: Costs that can be traced to a particular cost object are called:

Select one:

Option 1: product costs.

Option 2: direct costs.

Option 3: manufacturing costs.

Option 4: indirect costs.

Question 3: Which one of the following factors does NOT affect the direct / indirect cost classification:

Select one:

Option 1: operational design.

Option 2: cost materiality.

Option 3: availability of information gathering technology.

Option 4: cost behaviour.

Question 4: Variable cost per unit:

Select one:

Option 1: remains unchanged as the level of the cost driver changes.

Option 2: increases in direct proportion to changes in the cost driver.

Option 3: increases, but not in direct proportion to changes in the cost driver.

Option 4: decreases in direct proportion to changes in the cost driver.

Question 5: Which of the following are problems frequently encountered in data collection?

Select one:

Option 1: All of the given answers

Option 2: Outliers

Option 3: Missing data

Option 4: Mismatched time periods