Which TWO of the following is the manager of a profit Centre likely to have control?

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost incurred."

Which of the following best describes a period cost?

A firm has to pay a 20c per unit royalty to the inventor of a device which it manufactures and sells.

How would the royalty charge be classified in the firm's accounts?

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost per unit."

Which of the following best describes a controllable cost?

The following data relate to the overhead expenditure of a contract cleaners at two activity levels.

What is the estimate of the overheads if 18,300 square metres are to be cleaned?

$_________

A company employs four supervisors to oversee the factory production of all its products.

How would the salaries paid to these supervisors be classified?

Fixed costs are conventionally deemed to be which of the following?

A company makes chairs and tables.

Which TWO of the following items would be treated as an indirect cost?

Which TWO of the following items might be a suitable cost unit within the credit control department of a company?

A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unit produced during the month.

How is this type of labour cost best described?

Which one of the above graphs illustrates the costs described below!
"A step fixed cost – when the vertical axis represents cost incurred."

The following observations of output and cost have been made:

It is known that at output levels above 15,000 units, variable cost per unit drops by $1 per unit for all subsequent units produced.

What is the variable cost for each unit of output above 15,000 units?

A company has recorded the following data in the two most recent periods.

What is the best estimate of the company's fixed costs per period?

$________

The total cost of production for two levels of activity is as follows:

The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown.

What is the level of fixed costs? (to the nearest whole number)

$_______

The following diagram represents the behaviour of one element of cost:

Which of the following statements is consistent with the above diagram?

A company manufactures and sells toys.

Which TWO of these costs are classified as distribution costs?

A company incurs the following costs at various activity levels:

Using the high-low method what is the variable cost per unit? (to the nearest whole number)

$________

A company has prepared flexed budgets at two activity levels. The cost per unit of three costs is given below. All three costs behave in a linear manner with respect to activity.

Is each of the costs variable, semi-variable or fixed?

The overhead expenses of a company are coded using a five digit coding system, an extract from which is as follows:

The coding for the hire costs of a packing machine is 12450.

Which is the coding for the issue of indirect materials issued from stores to the machining department?

Which TWO of the following would be classed as indirect labour?

Which one of the above graphs illustrates the costs described below!
"A fixed cost – when the vertical axis represents cost incurred."

Which of the following describes a cost centre?

When total purchases of raw material exceed 30,000 units in any one period then all units purchased, including the initial 30,000, are invoiced at a lower cost per unit.

Which of the following graphs is consistent with the behaviour of the total materials cost in a period?

The following shows the total overhead costs for given levels of a company's total output.

A step up in fixed costs of $500 occurs at an output level of 3,500 units.

What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?

What type of cost is supervisor salary costs, where one supervisor is needed for every ten employees added to the staff?

A manufacturing firm is very busy and overtime is being worked.

How would the amount of overtime premium contained in direct wages normally be classed?

An organization manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.

What is the variable cost per unit of the product (to 2 dp)?

$ _____

A total cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.

What type of cost is this?

The following information for advertising and sales has been established over the past six months:

Using the high-low method which of the following is the correct equation for linking advertising and sales from the above data?

Which one of the above graphs illustrates the costs described below!
"A semi-variable cost – when the vertical axis represents cost incurred."