1. A fast food franchise restaurant has to pay 5% of the selling price of each item sold as royalty. How would it be classified in the firms accounts?
2. Identify which of the following is not a cost object
3. An organization has the following total costs at three activity levels.
The variable cost is constant throughout the activity range and there is a step up of 20% in fixed cost when output exceeds 9,000 units. Calculate the total cost at an activity level of 12,000 units.
4. Which of the following is usually a stepped cost?
5. How is machine depreciation treated?
6. Which of the following would be considered direct labour?
7. Depreciation of factory machinery falls under which category?
8. An organization produces a single product. The total cost of making 10,000 units is $160,000 and the total cost of producing 20,000 units is $200,000. What is the variable cost?
9. Consider the following costs incurred at a supermarket.
(i) Staff supervisor cost
(ii) Finance manager salary
(iii) Office furniture depreciation
Which of the above are considered administration costs?
10. “The monthly cost of electricity is $250 plus an additional of $1.75 per unit consumed.” The statement relates to;