Direction: Read carefully and answer the questions below. Encircle the letter of thecorrect answer.1. Which of the following is an example of a variable cost?а.interestb. ingredientsс.insuranced. lease2. What type of cost varies depending on the quantity of products beingproduced?а.fixedb.net salesс.totald.variable3. Which among the following concepts is usually seen on the top item in anincome statement from which all costs and expenses is subtracted to arrive atnet income?a. fixed costb.net salesс.total costd. variable cost4. When do we obtain the break-even point?When the fixed cost is equal to the total costWhen the total cost is equal to the variable costWhen the variable cost is equal to the fixed costd. When the number of units of goods sold covers the all the costsа.b.с.5. Which of the following is NOT true?а.The fixed cost does not vary over time.b. The total cost is the sum of the fixed cost and the variable cost.с.The total cost is the difference between the fixed cost and the variablecost.d. It is necessary for business owners to determine the quantity of theproducts to sell in order for them not to obtain loss.

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1. Which of the following is an example of a variable cost? а. interest b. ingredients С. insurance d. lease

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...

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