A variable cost is constant if expressed in a per unit basis , but the total dollar mount changes as the number of unit's increase or decreases
COST ACCOUNTING - COST BEHAVIOR

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Business
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University
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Medium
Carlo MBA
Used 79+ times
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20 questions
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1.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
True
False
2.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
The fixed cost per unit varies with changes in the level of activity
True
False
3.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
The cost of wages paid to employees directly involved in converting materials to finished goods is classified as direct labor cost
True
False
4.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
A direct materials cost that varies with the number of units produced is an example of fixed cost
True
False
5.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
The wages paid to carpenters would be classified as factory overhead cost
True
False
6.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
Unit variable cost does not change as the number of units of activity changes
True
False
7.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
Inirect cost can be specifically identified to cost object
True
False
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