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Flashcards in quiz 2 (chapter 1) Deck (7)
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1

1. Which of the following costs would not be a product cost?
A. Cost of air conditioning the factory foreman’s office
B. Depreciation on machinery in the factory
C. Indirect labor
D. Sales commissions

D. Sales commissions

2

2. Period costs include which of the following?
A. Depreciation on the CEO’s company car
B. General accounting costs
C. Executive administrative costs
D. All of the above

. All of the above

3

As the activity that drives a variable cost increases, the total fixed cost per unit decreases.

A. True
B. False

. True

4

Within the relevant range:
A. Variable costs vary in total
B. Fixed costs vary
C. Total variable costs are constant

A. Variable costs vary in total

5

Fixed costs per unit vary.

A. True
B. False

True

6

Variable costs per unit are constant
A. True
B. False

True

7

As the cost driver increases then fixed costs increases
-A. True
B. False

False