4. Management Accounting

Cost Classification — Quiz

Test your understanding of cost classification with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes a semi-variable cost?

Question 2

A company’s monthly telephone bill includes a fixed line rental charge of $100 and a variable charge of $0.05 per minute of usage. If the company uses 2,000 minutes in a month, what is the total telephone cost for that month?

Question 3

Which of the following is an example of a controllable cost for a production manager?

Question 4

If a company’s total costs are $50,000 when producing 5,000 units and $62,500 when producing 7,500 units, what is the variable cost per unit?

Question 5

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