1. Which of the following is an example of a variable cost? а. interest b. ingredients С. insurance d. lease
1. Which of the following is an example of a variable cost? а. interest b. ingredients С. insurance d. lease
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...
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![Direction: Read carefully and answer the questions below. Encircle the letter of the
correct answer.
1. Which of the following is an example of a variable cost?
а.
interest
b. ingredients
с.
insurance
d. lease
2. What type of cost varies depending on the quantity of products being
produced?
а.
fixed
b.
net sales
с.
total
d.
variable
3. Which among the following concepts is usually seen on the top item in an
income statement from which all costs and expenses is subtracted to arrive at
net income?
a. fixed cost
b.
net sales
с.
total cost
d. variable cost
4. When do we obtain the break-even point?
When the fixed cost is equal to the total cost
When the total cost is equal to the variable cost
When the variable cost is equal to the fixed cost
d. When the number of units of goods sold covers the all the costs
а.
b.
с.
5. Which of the following is NOT true?
а.
The fixed cost does not vary over time.
b. The total cost is the sum of the fixed cost and the variable cost.
с.
The total cost is the difference between the fixed cost and the variable
cost.
d. It is necessary for business owners to determine the quantity of the
products to sell in order for them not to obtain loss.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F828f6f55-a3fc-47da-942f-7928ff835a49%2F75459f36-0bd1-426c-904f-65afa9e22731%2Fp4w8uqi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Direction: Read carefully and answer the questions below. Encircle the letter of the
correct answer.
1. Which of the following is an example of a variable cost?
а.
interest
b. ingredients
с.
insurance
d. lease
2. What type of cost varies depending on the quantity of products being
produced?
а.
fixed
b.
net sales
с.
total
d.
variable
3. Which among the following concepts is usually seen on the top item in an
income statement from which all costs and expenses is subtracted to arrive at
net income?
a. fixed cost
b.
net sales
с.
total cost
d. variable cost
4. When do we obtain the break-even point?
When the fixed cost is equal to the total cost
When the total cost is equal to the variable cost
When the variable cost is equal to the fixed cost
d. When the number of units of goods sold covers the all the costs
а.
b.
с.
5. Which of the following is NOT true?
а.
The fixed cost does not vary over time.
b. The total cost is the sum of the fixed cost and the variable cost.
с.
The total cost is the difference between the fixed cost and the variable
cost.
d. It is necessary for business owners to determine the quantity of the
products to sell in order for them not to obtain loss.
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