Which of the following is a period cost: a. Selling expenses b. Prepaid rent c. Direct labour d. Manufacturing overhead Which of the following is a product cost a. Commissions b. Depreciation Expense c. Wage expense d. Manufacturing overhead Which is the best statement regarding variable costs: a. b. c. d. Total variable costs do not change in total as the level of activity changes Variable Costs per unit do not change, as the level of activity changes Direct materials are not considered a variable cost Variable costs must be paid regardless of the volume of that product or service you se Which statement is false regarding the kind decisions can managers make using the unit cost information? Setting a price if an entity uses cost-based pricing Inventory valuation Decisions relating to manufacturing staff wages Decisions regarding whether to introduce a new product a. b. c. d. Which is the best statement regarding market-based pricing: Market-based pricing applies a mark-up to some calculation of the product Market-based pricing is influenced by the degree of product differentiation and competition Market-based pricing is the simplest way to calculate the price of a product Market-based pricing will always assure that profit will be generated a. b. c. d. Below are statements referring to business structure. Choose the most suitable statement a. for a simple business with a mild need for capital a company structure is the best b. for a simple business, an incorporated structure is the best choice, especially as choice capital is not needed for a complex business requiring extensive capital, a company is the best structure choice for a complex business with extensive capital requirements, a partnership is the best structure choice c. d