A publishing company pays an author a fee of $5,000 on delivery of a completed manuscript plus a royalty of $1.50 per book sold. What type of cost does this expense represent?
A. Fixed
B. Stepped
C. Mixed or semi-variable
D. Variable
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The costs incurred by a business at two different levels of activity are shown below. What is the value of the fixed costs of the business?
A. $295,000
B. $30,000
C. $400,000
D. $135,000
What type of cost do the figures above represent?
A. Fixed
B. Mixed or semi-variable
C. Stepped
D. Variable
Which of the following statements correctly describes a direct cost?
A cost that cannot be clearly associated with specific activities or products
B. A cost that is past and should not be taken into account for future decisions
C. A cost that will change as a result of a decision under consideration
D. A cost that can be clearly associated with specific activities or products
The following costs and sales information is available for an organisation which makes and sells plastic buckets.There was no opening or closing inventory in this period. What is the profit under absorption costing?
A. $215,000
B. $270,000
C. $160,000
D. $305,000