Costing - Study Mode
[#191] Variable cost per unit ________.
Correct Answer
(B) remains constant
Explanation
Solution: Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.
[#192] An example of fixed cost ________.
Correct Answer
(B) rent for building
Explanation
Solution: An example of fixed cost rent for building. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
[#193] The process of allocating and apportioning the costs on suitable basis to all the departments is _______.
Correct Answer
(B) primary distribution
Explanation
Solution: The process of allocating and apportioning the costs on suitable basis to all the departments is primary distribution.
[#194] The process of redistribution of service department costs to production departments is ________.
Correct Answer
(C) secondary distribution
Explanation
Solution: The process of redistribution of service department costs to production departments is secondary distribution.
[#195] Depreciation of plant can be apportioned on the basis of ________.
Correct Answer
(A) plant value
Explanation
Solution: Depreciation of plant can be apportioned on the basis of plant value.