Question

1. Which of the following costs is typically not a fixed overhead cost for a factory?

A.Salaries of factory supervisors.

B.Rent on the factory building.

Property taxes on the factory building.

C.Indirect materials used in production.

D. None of the answer choices is correct.
2.Which of the following costs does not change in total when the activity level increases or decreases within the relevant range?

A.mixed costs

B.fixed cost

C.variable costs

D.relevant costs

E.None of the answer choices is correct.

3.All of the following are steps of the high-low method except:

A.stating the results in equation form Y = f + vX.

B.calculating the fixed cost per unit.

C.calculating the variable cost per unit.

D.identifying the high and low activity data points.

E.None of the answer choices is correcT

Answer 1

Question 1

All the costs like salaries , Rent and property taxes have to incurred irrespective of volume level or activity in factory hence these are fixed.

However indirect materials used in production are variable and changes with change in volume Hence it is not a fixed cost.

ANSWER IS C

Question 2:

Fixed costs does not change with change in activity level or volume.

ANSWER IS B

Question 3:

All are the steps in High-low method except stating the results in equation form Y= f+ Vx

Here all are the steps in High low method only Option A is selected by eliminating all others since remaining all are mandatory steps.

ANSWER IS OPTION A