1(a) Which of the folllowing best describes a stepped fixed cost. A. a cost which is difficult to estimate B. A cost which has a fixed and a variable element C. A cost which only varies sometimes D. A cost which will be fixed for specific levels of production

1. (b) A mixed cost would: A. Be zero when output is zero and would increase in direct proportion to output B. Be more than zero if no porducts were made and would then increase in direct proportion to output C. Be a fixed amount when output was zero and would not increase in direct proportion to output D. Be zero if outputs were zero and would change erratically as output increased

1. (c) An example of a mixed cost would be A. Cost of matierals for production B. Salries of supervisors C. Power and Lighting costs D. Cost of insurance for assets

1 (d) an example of a manufactuing overhead would be a. raw materials in production b. advertising c. office rent d. costs of templates and molds used in product