Identify the following statements as correct or wrong. Justify the correct and correct the wrong statements.

1. Fixed cost remains fixed in per unit and in total level.

2. Variable cost remains variable in per unit and in total level.

3. Semi-variable cost carries qualities of fixed cost and Variable cost both

4. Direct costs are not easily traceable or identifiable to the cost objects

5. Budgeted costs are the actual costs incurred this year

6. The determination of a cost as either direct or indirect depends upon the selected accounting standards

and the cost object chosen

7. If each motorcycle requires a belt that costs Rs20 and 2,000 motorcycles are produced for the month, the total cost for belts is considered to be a direct fixed cost

8. Direct costs of a cost object are costs related to a particular cost object that can be allocated to that cost object in an economically feasible (cost-effective) way.

Data for question 9 and 10

The East Company manufactures several different products. Unit costs associated with Product ORD105 are as follows:

Direct materials Rs54

Direct manufacturing labor 8

Variable manufacturing overhead 11

Fixed manufacturing overhead 25

Sales commissions (2% of sales) 5

Administrative salaries 12

Total Rs115

9) What is the percentage of the total variable costs per unit associated with Product ORD105 with respect to total cost?

10) What is the percentage of the total fixed costs per unit associated with Product ORD105 with respect to total cost?