An organization manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.

What is the variable cost per unit of the product (to 2 dp)?

$ _____

The following shows the total overhead costs for given levels of a company's total output.

A step up in fixed costs of $500 occurs at an output level of 3,500 units.

What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?

When total purchases of raw material exceed 30,000 units in any one period then all units purchased, including the initial 30,000, are invoiced at a lower cost per unit.

Which of the following graphs is consistent with the behaviour of the total materials cost in a period?

The following diagram represents the behaviour of one element of cost:

Which of the following statements is consistent with the above diagram?

Which one of the above graphs illustrates the costs described below!
"A step fixed cost – when the vertical axis represents cost incurred."

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost per unit."

Which one of the above graphs illustrates the costs described below!
"A linear variable cost – when the vertical axis represents cost incurred."

A company incurs the following costs at various activity levels:

Using the high-low method what is the variable cost per unit? (to the nearest whole number)

$________

What type of cost is supervisor salary costs, where one supervisor is needed for every ten employees added to the staff?

A total cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.

What type of cost is this?

The following information for advertising and sales has been established over the past six months:

Using the high-low method which of the following is the correct equation for linking advertising and sales from the above data?

Fixed costs are conventionally deemed to be which of the following?

The following data relate to the overhead expenditure of a contract cleaners at two activity levels.

What is the estimate of the overheads if 18,300 square metres are to be cleaned?

$_________

The following observations of output and cost have been made:

It is known that at output levels above 15,000 units, variable cost per unit drops by $1 per unit for all subsequent units produced.

What is the variable cost for each unit of output above 15,000 units?

A company has recorded the following data in the two most recent periods.

What is the best estimate of the company's fixed costs per period?

$________

Which one of the above graphs illustrates the costs described below!
"A fixed cost – when the vertical axis represents cost incurred."

Which one of the above graphs illustrates the costs described below!
"A semi-variable cost – when the vertical axis represents cost incurred."

A production worker is paid a salary of $650 per month, plus an extra 5 cents for each unit produced during the month.

How is this type of labour cost best described?

The total cost of production for two levels of activity is as follows:

The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown.

What is the level of fixed costs? (to the nearest whole number)

$_______

A company has prepared flexed budgets at two activity levels. The cost per unit of three costs is given below. All three costs behave in a linear manner with respect to activity.

Is each of the costs variable, semi-variable or fixed?