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problem1: With respect to a fixed cost, an increase in the activity level within the relevant range results in:

[A] An unchanged fixed cost per unit.

[B] A proportionate increase in total fixed costs

[C] An increase in fixed cost per unit.

[D] A decrease in fixed cost per unit.

problem2: Which of the following approaches to preparing an income statement find outs gross margin?

[A] Item A

[B] Item B

[C] Item C

[D] Item D

problem3: Salaries of accounts receivable clerks when one clerical worker is needed for every 750 accounts receivable is an ex of a:

[A] curvilinear cost

[B] fixed cost

[C] step-variable cost

[D] mixed cost

problem4: The least-squares regression method:

[A] is the only method acceptable under generally accepted accounting principles.

[B] fits a regression line by minimizing the sum of the squared errors from the regression line.

[C] is generally less accurate than the scatter graph method.

[D] can be used only if the fixed cost element is larger than the variable cost element.

Cost Accounting, Accounting

  • Category:- Cost Accounting
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