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22. A particular cost is classified as being semi variable Ifactivity increases by l % what will happen to the cost per unit? A Increase
22. A particular cost is classified as being "semi variable" Ifactivity increases by l % what will happen to the cost per unit? A Increase B. Reduce but not in proportion to the change in activity C. Reduce in proportion to the change in activity D. Remain constant 23. Which of the following would be regarded as a stepped-fixed cost in the operation of a motor vehicle? A. Hire purchase payments B. Insurance C. Petrol D. Tyre replacement 24. A small engineering company that makes generators specifically to customers' own designs has had to purchase some special tools for a particular job. The tools will have no further use after the work has been completed and will be scrapped. How should the cost of these tools be treated? A. B. C. D. As variable production overheads As fixed production overheads As indirect expenses As direct expenses 25. Which of the following are examples of responsibility centres within an organization? i. Profit centre ii. Revenue centre ii. Investment centre A.Only B. all of them C. ii and ii only D. iand i 26. Which of the following are likely to be fixed costs? i. Rental costs of warehouse used to store goods prior to sale ii. Senior purchasing manager's annual salary ii. Material costs of wood used to construct tables for sale iv. Costs of paper used to print books A i and i B. i and iv C i and i only D. ii and iv 9
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