a. Indirect costs are always traced.
b. Indirect costs are always allocated.
c. The design of operations affects the direct/indirect classification.
d. The direct/indirect classification depends on the choice of cost object
15) Which is true on variable costs?
a. increase in total when the actual level of activity increases
b. are always indirect costs
c. include most personnel costs and depreciation on machinery
d. can always be traced directly to the cost object
a. calculation of the degree of operating leverage for the company.
b. estimating how many products will have to be sold to make a decent profit.
c. identifying which costs are variable and which costs are fixed.
d. finding out where the total costs line intersects with the total revenues line on a graph
a. Is an unrealised expense reported in equity.
b. Is also called depreciation.
c. Is also called amortization.
d. Is the process of allocating the cost of natural resources to periods in which they are consumed.
a. It primarily measures and records business transactions.
b. The audience tends to be stockholders, creditors, and tax authorities.
c. The reports are generally delayed and historical.
d. There are no regulations governing the reports.
a. 30,000 units
b. 29,400 units
c. 32,400 units
d. 40,600 units
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