20. Prime cost consists of direct materials combined with

direct labour.

manufacturing overhead.

indirect materials.

cost of goods manufactured.

21. The Breakeven point in units sold will decrease if there is an increase in which of the following

unit sales volume

total fixed expenses

unit variable expenses

selling price

22. In Static budgets, the quantity of materials or hours is changed to reflect the actual quantity.

True

False

23. In the early days, machine hours were used as a means to allocate overheads?

True

False

24. The cost structure of a firm consists of Sales, Variable cost and Fixed cost

True

False