🎯Cost Behavior: Variable Cost, Fixed Cost, and Mixed Cost: 27 MCQs

How will a mixed cost in total and per unit change if the level of activity increases?

Which of the following best defines the relative proportion of each of the three types of cost (variable, fixed, and mixed costs) in an organization?

Zamato Company has realized a steady increase in its cost per unit even though total costs have remained stable for the last 6 months. Which of the following statements describing the reason for the increase in the cost per unit is true?

Which of the following statements regarding fixed costs is correct?

A car manufacturer company purchased an airbag system from a supplier and installed it in a manufactured car. Which of the costs below would best describe an airbag?

Fixed cost per unit:

The cost structure of a merchandising company will have a high proportion of _________.

Which of the following statements about Differential costs is correct?

Weatherford’s relevant range of activity is 1,500 units to 5,000 units. When it manufactures and sells 3,000 units, the average costs per unit are as follows:​

If it produces 5,000 units, the Indirect Manufacturing Cost incurred will be close to:

The following information was recorded by Kinley Corporation in the month of April 20X7:

If 20,000 units were manufactured, the total amount of manufacturing overhead cost would be:

Bonanza Corporation reports that its total variable cost is $820,116 and its total fixed cost is $190,974 at an activity level of 8,900 units. What would be the total cost, both fixed and variable, at an activity level of 11,100 units? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Geely Corporation has recorded the following information:​

If they sell 12,000 units, the variable cost per unit sold will be:

The cost per unit for DHL Corporation is as follows:​

If it increases production from 9,000 to 9,001 units, what will be the incremental manufacturing cost? (Assume that the increase is within the relevant range):

Indus Corporation’s relevant range of activity is 4,500 units to 9,000 units. Its average costs per unit are as follows when it manufactures and sells 6000 units:​

If it increases production from 6,000 to 6,001 units, what will be the incremental manufacturing cost?

Freshly Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:​​

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Blackberry Inc. has provided the following information:​

If 5,000 units are sold, the total variable cost is closest to:

Home Corporation’s relevant range of activity is 4,000 units to 8,000 units. Its average costs per unit to produce and sell 6,000 units are as follows:​

If 7,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:

The following data has been reported by Xavier company:

If 6,000 units are sold, the variable cost per unit sold is closest to:

The following data has been provided by the Nikkel Corporation:

For financial reporting purposes, the total amount of product costs incurred to make 8,000 units is closest to:

At a sales volume of 58,000 units, Disney Corporation’s property taxes (a cost that is fixed with respect to sales volume) total $934,500. What should be the total property tax per unit at a sales volume of 57,200 units, assuming that this sales volume is within the relevant range?

At a sales volume of 58,000 units, Disney Corporation’s property taxes (a cost that is fixed with respect to sales volume) total $934,500. What should be the average property tax per unit at a sales volume of 57,300 units, assuming that this sales volume is within the relevant range?

At a sales volume of 20,000 units, Sunshine Company’s sales commissions (variable cost with respect to sales volume) total $280,200. Assume that sales volume is within the relevant range. What should be the average sales commission per unit at a sales volume of 22,000 units?

Falcon Company has an activity level of 11,000 machine-hours in the month of April, its total variable maintenance cost is $590,200 and total fixed maintenance cost is $258,290. What would be the total variable maintenance cost at an activity level of 11,500 machine-hours in a month? Assume that this level of activity is within the relevant range.

Ronald Inc. recorded sales volume of 50,000 units. Its total fixed costs are $50,000 and total variable costs are $70,000. The relevant range is 40,000 to 60,000 units. What would be the total expected cost per unit, if Ronald were to sell 60,000 units?

Cable Inc. reports an activity level of 3,200 machine-hours in the month of June, a total variable inspection cost and total fixed inspection cost of $79,946 and $10,072 respectively. Assuming that the level of activity is within the relevant range, calculate the total variable inspection cost at an activity level of 3,600 machine-hours in the month of July.