4. Cost and Management Accounting

Cost Classification — Quiz

Test your understanding of cost classification with 5 practice questions.

Practice Questions

Question 1

Which of the following costs will remain constant in total, but decrease per unit as the level of production increases?

Question 2

A company's production supervisor's salary is $$ \$4,000 $ per month. If the company produces $ 1,000 $ units in one month and $ 1,500 $ units in the next month, the total supervisor's salary remains $ \$4,000 $$. This cost is an example of a:

Question 3

The cost of packaging materials that are used for each product sold is an example of a:

Question 4

Which of the following scenarios best illustrates a semi-variable cost?

Question 5

A company manufactures custom furniture. The cost of wood specifically purchased for a unique customer order is classified as a: