 # MANAGEMENT ACCOUNTING COST ESTIMATION ## 9 questions # Introducing newPaper mode

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• 1. Multiple-choice
1 minute
1 pt

A mixed cost

is fixed over a wider range of activity than a step cost.

is a fixed cost over the relevant range and a variable cost everywhere else.

contains both fixed and variable components.

always increases on a per unit basis.

• 2. Multiple-choice
1 minute
2 pts

Bud uses the high-low method of estimating costs. Bud had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 12,000 units, total costs were$78,000. Bud would estimate variable cost per unit as

$10.00$6.50

$4.00$7.53

• 3. Multiple-choice
30 seconds
1 pt

Which of the following is a variable cost?

A cost that is $20,000 when production is 50,000, and$20,000 when production is 70,000.

A cost that is $20,000 when production is 50,000, and$28,000 when production is 70,000.

A cost that is $20,000 when production is 50,000, and$40,000 when production is 70,000.

A cost that is $40,000 when production is 50,000, and$40,000 when production is 70,000.