If the total setup cost is $35000 and fixed setup cost is $19000, then the variable fixed cost would be _____________?
Correct answer: A. $16,000
- A. $16,000
- B. $54,000
- C. $64,000
- D. $74,000Compare Credit Cards
Explanation
Variable setup cost is found by removing fixed setup cost from total setup cost: $35,000 minus $19,000 equals $16,000. The phrase “variable fixed cost” is a wording error, but the intended calculation is clear.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If an actual variable quantity is 50, the actual and budgeted overhead cost of allocation is $7550 and $4500 respectively, then the variable overhead spending variance could be __________?
The less skilled workers for operating machines then expected are classified as ___________?
The lower plant leasing, lower administrative costs, lower depreciation on equipment and plant are all the factors of _____________?
In overhead cost variance analysis, the fixed overhead does not include ______________?
To calculate fixed overhead flexible budget variance, an actual incurred cost is subtracted from ___________?
The fixed overhead allocated for actual output unit is subtracted from budgeted fixed overhead to calculate _______________?