51 which of the following is the best example of a variable cost a monthly loan paym 4313469

51 which of the following is the best example of a variable cost a monthly loan paym 4313469

51.Which of the following is the best example of a variable cost?

A.Monthly loan payment on a plant generator.

B.Labor cost for plant employees.

C.Lease payment for the office copy machine.

D.General Manager’s salary.

52.In June, Ace Manufacturing Plant produced 100 units of propane canisters for sale. The total variable costs were $5,000 and the fixed costs for the plant amounted to $3,000.  How much is the unit variable cost for canisters if 120 canisters are produced?

A.$50.00

B.$66.67

C.$80.00

D.$41.67

53.Which of the following will least likely be a variable cost for Pizza Hut?

A.Dough, sauce, and cheese.

B.Boxes for ‘to go’ pizza orders.

C. Cooking ovens.

D.Cashiers’ hourly wages

54.During May, Mayer Company’s total fixed costs were $5,000 and variable costs were $7,000 when 500 units were produced. How much is total cost for June if 600 units are produced?

A.$13,400

B.$12,000

C.$7,000

D.$14,400

55.Which of the following is the best example of product-level costs?

A.Property taxes of a factory.

B.Cost of plastic for bottled water.

C.Research and development costs.

D.Setup of machine drivers

56.Which of the following statements describes how step costs relate to fixed and variable costs?

A.A step cost behaves more like a variable cost as the step size decreases.

B.A step cost behaves more like a fixed cost as the step size decreases.

C.A step cost behaves like a variable cost, but not like a fixed cost.

D.A step cost behaves like a fixed cost, but not like a variable cost.

57.Suppose fixed costs are $500, variable cost is $5 per unit, and step costs are $50 for every 20 unit produced.  What is the total cost of producing 25 units?

A.$675

B.$688

C.$725

D.$800

E.$625

58.Factory rent is an example of:

A.Product-level cost.

B.Facility-level cost.

C.Unit-level cost.

D.Batch-level cost.

E.None of the above.

59.Production planning required to prepare the production process for the next product is an example of:

A.Product-level cost.

B.Facility-level cost.

C.Unit-level cost.

D.Batch-level cost.

E.None of the above.

60.Advertising and research and development costs are examples of:

A.Product-level cost.

B.Facility-level cost.

C.Unit-level cost.

D.Batch-level cost.

E.None of the above.

61.The HomeAmour Company operates their production and administrative activities from a single facility.  Which of the following would be an example of a facility-level cost?

A.Salary of the Chief Operating Officer.

B.Raw materials used to produce units.

C.Depreciation on the equipment used in the factory.

D.Freight paid on finished units shipped to customers.

62.If a production facility increases its production by 1,500 units, its:

A.Variable (unit-level) cost per unit will increase.

B.Fixed cost per unit will increase.

C.Total fixed costs will decrease.

D.Fixed cost per unit will decrease.

63.During the month of September the Gaffney Company, which operates one factory location and one administrative location, reported the following costs:

Repair costs for the factory’s air conditioning system$3,500

Property taxes on its administrative office building$    900

Rent on factory building$1,400

Bonuses paid to a factory manager$    500

Facility costs total:

A.$5,300

B.$5,400

C.$2,800

D.$4,900

64.A direct cost can be:

A.Only fixed.

B.Only variable (unit-level).

C.Either fixed or variable (unit-level).

D.Neither fixed nor variable (unit-level).

65.Which one of the following is the best example of a step cost for Ace Manufacturing?

A.Paying a higher factory utility bill for the month of June.

B.Cutting back health care coverage for employees.

C.Terminating the manufacturing quality control employees.

D.Opening a new assembly line for one of the company’s most popular products as a result of its original assembly line continually operating at capacity.

Looking for a similar assignment? Get help from our qualified experts!

Order Now

Related Posts