1) ABC Co. listed the following three (3) costs for the 2nd quarter of 2020.

AprilMayJuneSales in units4,2003,8005,000Cost A$37,500$32,300$42,500Cost B$65,100$58,900$77,500Cost C$36,000$36,000$36,000

Based on this information, what is the cost behaviour ofCost B?

Variable cost

Period cost

Product cost

Mixed cost

Fixed cost

2) Which of the following activities listed is an example of a financial accounting activity?

Conducting a profitability analysis for a potential customer.

Preparing the company's annual income statement for the prior year.

Preparing a weekly performance report for a local branch manager.

Analyzing a departmental performance report.

Preparing a cash budget for the next quarter.

3) When the activity level or volume of output decreases within the relevant range, this results in:

An increase in total fixed costs.

A decrease in fixed cost per unit.

An increase in fixed cost per unit.

No change in total variable costs

An increase in the variable cost per unit

4) The following costs are listed for RST Inc. for May.

Advertising$70,000Factory depreciation expense$15,600Direct labour$64,000Admin. office rent expense$8,000Sales commissions$14,000Direct materials$103,000Admin. salaries expense$30,000Factory supervisor salary$7,000Factory maintenance expense$16,000Warehouse rent expense$56,000

What is the totalProduct costfor the month?

$261,600

$178,000

$383,600

$167,000

$205,600

5) Which of the following activities listed is an example of a financial accounting activity?

Conducting a profitability analysis for a potential customer.

Preparing the company's annual income statement for the prior year.

Preparing a weekly performance report for a local branch manager.

Analyzing a departmental performance report.

Preparing a cash budget for the next quarter.

6) When the activity level or volume of output decreases within the relevant range, this results in:

An increase in total fixed costs.

A decrease in fixed cost per unit.

An increase in fixed cost per unit.

No change in total variable costs

An increase in the variable cost per unit.