The cost of making or buying goods for sale is an example of what?

Select one:

a.Administration Costs

b.Payments to Employees

c.Cost of Sales

d.Revenue

How do expenses relate to payments?

Select one:

a.There is no relationship between expenses and payments.

b.Expenses usually give rise to a need to make a payment at some time but not necessarily at the time when the expense is incurred.

c.Expenses are exactly the same thing as payments and an expense is incurred at the exact moment that a payment is made.

d.Expenses are the difference between receipts and payments.

Raw materials used in the production of chemicals are a variable expense for Clark Casc Ltd. They vary in line with production.

A quantity of Chemical A costing 10 is used in the productionof 50kg of Product B.

How much does Clark Casc Ltd need to spend on Chemical A to produce 500kg of Product B?

Select one:

a.10

b.100

c.Either 100 or -100

d.Insufficient information provided

Helibeb Ltd is a training provider. For one of their core three-day training courses they require external consultants, who cost 1,500 each for the three days. Each consultant can train a maximum of 20 trainees, so that Helibeb's expenditure on hiring external training consultants for up to 100 trainees is as follows:

1,500 if there are between 1 and 20 trainees

3,000 if there are between 21 and 40 trainees

4,500 if there are between 41 and 60 trainees

6,000 if there are between 61 and 80 trainees

7,500 if there are between 81 and 100 trainees

What kind of cost is the hiring of external consultants for Helibeb?

Select one:

a.Step fixed cost

b.Variable cost

c.Semi-fixed cost

d.Capital cost

What is a semi-variable cost?

Select one:

A cost which has a fixed element and a variable element, so that the cost is (a + bx)forxunits, where ais the fixed element and bper unit is the variable element.

A cost which remains the same over a range of production volumes but rises when the upperlimit of that range is exceeded.

A cost which varies with the level of production but also varies with the cost of labour or materials.

A cost which is treated as fixed for internal planning purposes but treated as variable for external reporting purposes.