A firm has to pay a $0.5 per unit royalty to the inventor of a device which it manufactures and sells.The royalty charge would be classified in the firm's accounts as a/an:
A. Selling expense
B. Direct expense
C. Production overhead
D. Administrative overhead
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A cost is described as staying the same over a certain activity range and then increasing but remaining stable over a revised activity range in the short term.What type of cost is this?
A fixed cost
B. A variable cost
C. A semi-variable cost
D. A stepped fixed cost
A manufacturing company has four types of cost (identified as Tl, T2, T3 and T4). The total cost for each type at two different production levels is:Which two cost types would be classified as being semi-variable?
A. Tl and T3
B. Tl and T4
C. T2 and T3
D. T2 and T4
The overhead of a company are coded using 5 digit coding system, an extract from which is as followThe coding for the depreciation of machine of production Dept. C is 32605Which is the coding for the indirect labour cost incurred in service Dept. Y
A. 31604
B. 40602
C. 41602
D. 32605
Calculate the expected cost of producing 850 units of product, given the information shown in the table below.
A. 14,825
B. 15,485
C. 15,825
D.16,485