4) 4) Straight-line depreciation is a typical example of a: A) step-variable cos

Question

4) 4) Straight-line depreciation is a typical example of a: A) step-variable cost. B) curvilinear cost. C) fixed cost. D) mixed cost. E) variable cost. 5) 5) Macon Company has a variable selling cost. If sales volume increases, how will the total? cost and the variable cost per unit behave? Total Variable Cost A. Increase B. Increase C. Increase D. Remain constant E. Decrease Variable Cost Per Unit Increase Remain constant Decrease Decrease Increase A)Choice A B)Choice B c) Choice C D)Choice D E)Choice E 6) Which of the following costs changes in direct proportion to a change in the activity 6) level? A) Variable cost. B) Fixed cost. C) Step-fixed cost. D) Semivariable cost. E) Step-variable cost. 7) What type of cost exhibits the behavior shown below? 7) Manufacturing Volume (Units) Total Cost 150,000 150,000 Cost Per Unit 50,000 80,000 $ 3.00 1.88 A) Semivariable cost. B) Variable cost. C) Mixed cost. D) Step-variable cost. E) Fixed cost.

Explanation / Answer

Q4. Answer is C. Fixed Cost Q5. Answer is B. Increase; Remain constant. Explanation: Total Variablec cost always changes in direct proportion to change in sales in the same direction. however, variable cost per unit remains constant at all the levet of activity within relevant range. Q6. Answer is A. Variable Cost Q7. Answer is E. Fixed cost. Explanation: As there is no change in cost i.e. remain at $ 150,000 at both the level of output, it is the case of fixed cost.

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