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Cost Behavior and Standard Costs Quiz

The document contains a series of multiple-choice questions related to cost behavior classifications, standard costs, and contribution margin calculations for a corporation. It presents specific cost data for different cost items and sales volumes, requiring the selection of the best answer for each question. The questions assess understanding of accounting principles and cost management.

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novi bag-ay
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8 views1 page

Cost Behavior and Standard Costs Quiz

The document contains a series of multiple-choice questions related to cost behavior classifications, standard costs, and contribution margin calculations for a corporation. It presents specific cost data for different cost items and sales volumes, requiring the selection of the best answer for each question. The questions assess understanding of accounting principles and cost management.

Uploaded by

novi bag-ay
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Instructions: Choose the BEST answer for each of the following items.

Mark only one answer for


each item on the Special Answer Sheet provided. Strictly no erasure allowed. Use Pencil No. 1 only.

28. The following data have been collected for four different cost items. Cost Item at 100 units Cost
Item at 140 units W ₱8,000 ₱10,560 X ₱5,000 ₱5,000 Y ₱6,500 ₱9,100 Z ₱6,700 ₱8,580

Which of the following classifications of these cost items by cost behavior is correct? Cost W Cost
X Cost Y Cost Z

a. variable fixed mixed variable b. mixed fixed variable mixed c. variable fixed variable variable d.
mixed fixed mixed mixed

29. Standard costs

a. are estimates of costs attainable only under the most ideal conditions.

b. are difficult to use with a process costing system.

c. can, if properly used, help motivate employees.

d. require that significant unfavorable variances be investigated, but do not require that significant
favorable variances be investigated.

30. A corporation is a wholesaler that sells a single product. Management has provided the
following cost data for two levels of monthly sales volume. The company sells the product for
₱133.60 per unit. Sales volume (units 4,000 5,000 Cost of sales ₱383,600 ₱479,500 Selling and
administrative costs ₱124,400 ₱136,000

The best estimate of the total contribution margin when 4,300 units are sold is: a. ₱112,230 c.
₱28,380 b. ₱162,110 d. ₱45,150

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