Multiple choice questions

Fixed costs are normally deemed to be:

A
Constant per unit of output;
Constant in total when production volume
B

changes;
C
Outside the control of management;
D
Those unaffected by inflation
 Fixed costs are normally deemed to be:

A
Constant per unit of output;
Constant in total when production volume
B

changes;
C
Outside the control of management;
D
Those unaffected by inflation
The following data relate to two output levels of a department:

Machine hours 17000 18500

Overheads Rs. 246500 Rs. 251750

The amount of fixed overheads is:

A. Rs. 5250

B. Rs. 59500

C. Rs. 187000

D. Rs. 246500
The following data relate to two output levels of a department:

Machine hours 17000 18500

Overheads Rs. 246500 Rs. 251750

The amount of fixed overheads is:

A. Rs. 5250

B. Rs. 59500

C. Rs. 187000

D. Rs. 246500
The following details relate to cost per unit (Rs.) of product R:
Level of Activity

1000 units 2000 units

Direct Material 4.00 4.00

Direct Labour 3.00 3.00

Production Overhead 3.50 2.50

Selling Overhead 1.00 0.50

The total fixed and variable cost per unit are

 Total Fixed Cost (Rs.) Variable cost per unit( Rs.)

A
2000 1.50

B
2000 7.00

C
3000 7.00

D
3000 8.50
 Total Fixed Cost (Rs.) Variable cost per unit( Rs.)

A
2000 1.50

B
2000 7.00

C
3000 7.00

D
3000 8.50
 Duradyne has total costs of $18,000 when
2,000 units are produced and $26,000 when
5,200 units are produced. If 4,000 units were
produced and sold for $8 each in a month, the
firm will report:
A.
Profit of $ 9000 B. Loss of $ 4000
C.
Profit of $12000 D. Zero Profit
 Duradyne has total costs of $18,000 when
2,000 units are produced and $26,000 when
5,200 units are produced. If 4,000 units were
produced and sold for $8 each in a month, the
firm will report:
A.
Profit of $ 9000 B. Loss of $ 4000
C.
Profit of $12000 D. Zero Profit
A company observed a decrease in the cost per
unit. All other things being equal, which of the
following is probably true?
A. The company is studying a variable cost, and
total volume has increased.
B. The company is studying a variable cost, and
total volume has decreased.
C. The company is studying a fixed cost, and total
volume has increased.
D. The company is studying a fixed cost, and total
volume has decreased.
A company observed a decrease in the cost per
unit. All other things being equal, which of the
following is probably true?
A. The company is studying a variable cost, and
total volume has increased.
B. The company is studying a variable cost, and
total volume has decreased.
C. The company is studying a fixed cost, and total
volume has increased.
D. The company is studying a fixed cost, and total
volume has decreased.