Question 36

True or false: With advancements in technology, more and more costs that once were classified as "indirect" can now be economically traced and thus become "direct"

True

False

Question 37

True or false: "Cost of Goods Sold" divided by the units sold is an accurate estimate of variable costs per unit in CVP analysis.

True

False

question: 38

A restaurant has a variety of costs including utilities, table napkins, potatoes & building rent. Which of these costs would most likely be classified as "fixed/indirect"

in relation to the cost of a chicken dinner

a) utilities

b) rent

c) napkins

d) potatoes

Question: Company "Q" produces 3 products referred to as "One", "Two" & "Three", who last month used the following, respectfully: $1,000, $2,000 and $3,000 worth of production labour; 100, 100 and 200 hours of machining hours; 20, 60 and 100 hours of inspection services. Last month indirect costs totaled as follows: inspection costs totaled $4,500, supervision costs totaled $24,000, and machine maintenance costs totaled $8.000.

Last month indirect costs for product lines "One", "Two" and "Three" totaled respectfully:

a) $18,500, $11,500, $6,500

b) $11,500, $18.500, $6,500

c) $6,500. $11.500, 18,500

d) $12.167 for each product line