Variable vs Fixed Costs

Practice Questions

CPA Business Environment and Concepts (BEC) › Variable vs Fixed Costs

Questions
6
1

A cost that is fixed per unit is an example of a:

2

There are a variety of ways of classifying costs of an object as either fixed or variable. The most accurate method is considered to be:

3

An example of an internal failure cost is:

4

Which of the following statements is correct regarding the difference between the absorption costing and variable costing methods?

5

Using the variable costing method, which of the following costs are assigned to inventory?

A: Variable selling and admin costs B: Variable factory overhead costs

6

Which of the following would be classified as a fixed cost?

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