Question 1(i) A cost that can be traced to a cost object is known asA. A fixed costB. A variable costC. A direct costD. An indirect cost(ii) Which of the following terms denotes the response of a cost to change in businessactivity:A. Cost accumulationB. Cost apportionmentC. Cost reapportionmentD. Cost behaviour(iii) Production of 100 units requires one supervisor at £30,000 p.a. If production isbetween 100-200 units then two supervisors are required at a total of £60,000 p.a.Such cost behaviour would be described as:A. FixedB. Stepped fixedC. VariableD. Semi-variable

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Answered: (i) A cost that can be traced to a cost…

(i) A cost that can be traced to a cost object is known as A. A fixed cost B. A variable cost C. A direct cost D. An indirect cost

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13MC: Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours...

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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