Practice Summary (20.6) - Cost Accounting Basics – Types of Costs - Management 1 (Organizational Behaviour/Finance & Accounting)

Practice: Summary

Lesson 20.6Cost Accounting Basics – Types of Costs

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9 questions

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6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is a direct cost?
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Think of costs you can trace back to a specific item.
Question 2.
Give an example of a fixed cost.
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What costs don't change regardless of production levels?
3Question 3.
What is a direct cost?
- Costs traceable to a specific cost object
- Overhead costs for the entire company
- Variable costs related to production
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Think about costs tied directly to items produced.
4Question 4.
True or False: Fixed costs change with production levels.
- True
- False
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Remember: Fixed costs do not fluctuate.
Question 5.
A company produces software with a fixed cost of $30,000 and a variable cost of $50 per unit. How many units must they sell to break even if they sell the software for $100 per unit?
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Focus on the contribution margin to calculate the break-even point.
Question 6.
Analyze how a business can adjust its pricing strategy if the marginal cost of a product increases unexpectedly.
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Contemplate the balance between cost and customer willingness to pay.

5 more questions in this section. Enroll free to practise them all.