1. What is the definition of period cost? a. Combination of variable and fixed cost. b. Cost that varies according to variation in the unit of output. c. Cost that is incurred for a monthly only and is added to the value of the inventory. d. Cost that is incurred for a certain financial period and is not added to the value of the inventory. 2. The following are examples of non-manufacturing overhead cost, except: a. outward transportation of finished goods. b. production clerk salary. c. sales commission for product. d. sales supervisor salary. 3. When the level of activity increases within the relevant range, how does each of the following change? A B) Average cost per unit Total variable cost Increases Increases Decreases D) Decreases Increases No change No change Increases Fixed cost per unit Increases Increases Decreases Decreases a. Choice A b. Choice D c. Choice B d. Choice C 4.Which statement is correct for Management Accounting? a. Management accounting report is prepared for internal users only. b. It is not a requirement to follow the Generally Accepted Accounting Principles in preparing management accounting reports. c. Management accounting is concerned with information and events from the past only. d. It is mandatory to prepare management accounting reports annually. 5.Direct cost is a cost that is classified by a. controllability. b. relevance. c. traceability. d. behaviour