Question 7 (Multiple Choice, 2 marks for each answer, max 10)

1. Fixed cost includes _________.
   1. Property taxes
   2. Rent
   3. Insurance premium
   4. All of the above
2. Under marginal costing, the stock is valued at ________.
   1. Total Cost
   2. Fixed Cost
   3. Variable Cost
   4. None of the above

3. Marginal cost is equal to _________.
   1. Variable overheads
   2. Prime cost plus variable overheads
   3. Prime cost minus variable overheads
   4. None of the above
4. You are told production is 50,000 units, fixed costs is $100,000 Selling price is $15.00 per unit and variable cost is $9.00 per unit. Determine profit using technique of marginal costing.

1. $300,000
2. $200,000
3. 750,000
4. 650,000

5. It was determined for the last two periods, total costs amounted to $7,500 and $6,000 against production of 3,000 and 2,250 units respectively. Determine marginal cost per unit and fixed cost.

1. $2.50 and $3,000
2. $1,00 and $4,000
3. $2.00 and $1,500
4. None of the above