Question1: In the standard cost formula Y = a + bX, what does the "a" represent?
[A] variable cost per unit
[B] total cost
[C] total variable cost
[D] total fixed cost
Question2: Contribution margin is calculated as sales revenue minus:
[A] cost of goods sold
[B] fixed expenses
[C] variable expenses
[D] cost of goods manufactured
Question3: A is a fixed cost; B is a variable cost. During current year the level of activity has decreased but is still within the relevant range. We would expect that:
[A] The cost per unit of A has remained unchanged.
[B] The cost per unit of B has decreased.
[C] The cost per unit of A has decreased.
[D] The cost per unit of B has remained unchanged.
Question4: In the standard cost formula Y = a + bX, what does the "Y" represent?
[A] variable cost per unit
[B] total fixed cost
[C] total cost
[D] total variable cost