Accounting for AQA: Part 1: Chapter 20

Question 1

A direct cost is a cost that cannot be identified directly with each unit of output.

True

False

Question 2

Wages paid to non-production staff (such as managers, secretaries, accountants) are a direct cost.

True

False

Question 3

A cost that does not normally change when the level of output increases is known as a fixed cost.

True

False

Question 4

Factory rent is normally a fixed cost but, if an increase in production requires a second factory to be rented, the cost behaviour is called a semi-variable cost.

True

False

Question 5

Marginal cost is the cost of producing one extra unit of output or service.

True

False

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Accounting for AQA: Part 1: Chapter 20

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

A direct cost is a cost that cannot be identified directly with each unit of output.

Question 2

Wages paid to non-production staff (such as managers, secretaries, accountants) are a direct cost.

Question 3

A cost that does not normally change when the level of output increases is known as a fixed cost.

Question 4

Factory rent is normally a fixed cost but, if an increase in production requires a second factory to be rented, the cost behaviour is called a semi-variable cost.

Question 5

Marginal cost is the cost of producing one extra unit of output or service.

AAT Q2022 Books

Accounting for AQA: Part 1: Chapter 20

Page 1 of 2 - There are 10 questions in total.

Question 1 Introduction

Question 1

A direct cost is a cost that cannot be identified directly with each unit of output.

Question 2

Wages paid to non-production staff (such as managers, secretaries, accountants) are a direct cost.

Question 3

A cost that does not normally change when the level of output increases is known as a fixed cost.

Question 4

Factory rent is normally a fixed cost but, if an increase in production requires a second factory to be rented, the cost behaviour is called a semi-variable cost.

Question 5

Marginal cost is the cost of producing one extra unit of output or service.