Cost Accounting - Easy mutiple Multiple Choice

1.Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced?

a. $12

b. $130,000

c. $200,000

d. $175,00

.The range of activity within which a linear cost function is valid is called the

a. activity range.

b. relevant range.

c. None of these choices are correct.

d. normal range

3.As the volume of activity increases within the relevant range, the variable cost per unit

a. decreases at first, then increases.

b. remains the same.

c. decreases.

d. increases.

4.The direct material cost is $20,000 when 2,000 units are produced. What is the direct material cost for 2,500 units produced?

a. $25,000

b. $15,000

c. $20,000

d. $ 5,000