Question

11.0 The charge that is most likely a fixed cost is for:

Select one:

a. Materials.

b. Equipment rental.

c. Direct labor.

d. Utilities.

12.0 If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80, how fast can they be expected to finish all twelve units?

Select one:

a. 18 hours

b. 289 hours

c. 264 hours

d. 316 hours

13.0 A budgeting method that assigns costs first to activities and then to projects based on each project's use of resources is:

Select one:

a. Activity-based budgeting.

b. Zero-based budgeting.

c. Top-down budgeting.

d. Bottom-up budgeting

Answer 1

Answer :

11. Option - B, Equipment rental.

Explanation : Fixed cost is a cost which do not change with change in level of output. Hence, Equipment rental is not concerned with level of output, it is to be paid even in case of no production.

12. Option - B, 289 hours

13. Option - A, Activity-based budgeting

Explanation : Activity based budgeting is a budgeting method that assigns costs first to activities and then to projects based on each project's use of resources.