1. Which of the following would be an example of a unit-basedcost driver? a. eng
ID: 2434157 • Letter: 1
Question
1. Which of the following would be an example of a unit-basedcost driver?
a.
engineering orders.
b.
direct labor hours.
c.
inspection hours.
d.
material moves.
2When the volume of activity increases within the relevant range,the fixed cost per unit
a.
decreases.
b.
decreases at first, then increases.
c.
remains the same.
d.
increases.
3.Assuming costs are represented on the vertical axis and volume ofactivity on the horizontal axis, which of the following costs wouldbe represented by a line that starts at the origin and reaches amaximum value beyond which the line is parallel to the horizontalaxis?
a.
total direct material costs
b.
a consultant paid $100 per hour with a maximum fee of $2,000
c.
employees who are paid $15 per hour and guaranteed a minimumweekly wage of $300
d.
rent on exhibit space at a convention
4.A steep slope in the variable cost line indicates a
a.
low variable cost per unit.
b.
high influence of activity on total variable costs.
c.
low influence of activity on total variable costs.
d.
large amount of fixed costs.
5.If production volume increases from 8,000 to 10,000 units,
a.
total costs will increase by 20 percent.
b.
total costs will increase by 25 percent.
c.
total variable costs will increase by 25 percent.
d.
mixed and variable costs will increase by 25 percent.
a.
engineering orders.
b.
direct labor hours.
c.
inspection hours.
d.
material moves.
Explanation / Answer
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