Question Tag: Fixed Cost

Search 500 + past questions and counting.

ICMA – Nov 2024 – L1 – Q5a – Cost Segregation and Estimation

Determine fixed and variable cost components using regression analysis and estimate total cost for a given production level.

Question

Ebo LTD is planning to determine its variable and fixed cost elements for its planned activity level for the next year. The company has recorded the following costs and production units in the past six months:

Month	Units (X)	Cost (Y)
January	5.8	40.3
February	7.7	47.1
March	8.2	48.7
April	6.1	40.6
May	6.5	44.5
June	7.5	47.1

Required:

i) Construct the least square regression model.
ii) Determine the variable cost per unit of output using the model.
iii) Determine the fixed cost for the month using the model.
iv) Estimate the total cost if the company plans to produce 6,200 units.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Estimation, Fixed Cost, Least Squares Method, Regression Analysis, Variable Cost
Level: Level 1

Topic: Cost Segregation and Estimation
Series: Nov 2024

QTB – May 2015 – L1 – SB – Q6 – Operations Research

This question involves calculating the change in revenue, total revenue, total cost, and total profit for a manufacturer based on given marginal cost and marginal revenue functions.

Question

A manufacturer determines that the firm’s Marginal Cost (MC) and Marginal Revenue (MR) functions are:

MR = R′(x)=100 + 0.1x

You are required to find the:

a. Change in revenue that results when the sales level increases from 20 to 30 units. (5 Marks)
b. Revenue resulting from the sale of 30 units. (5 Marks)
c. Cost of producing 30 units if the fixed cost (at $x = 0$ ) is N400. (5 Marks)
d. Total profit when 30 units of the product are sold. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fixed Cost, Marginal Cost, Marginal Revenue, Profit, Total Revenue
Level: Level 1

Topic: Operations Research
Series: MAY 2015

MI – Nov 2022 – L1 – SA – Q7 – Cost Classifications

Definition of fixed costs in relation to output

Question

Fixed cost is a cost:
A. Which changes in total in proportion to changes in output
B. Which is partly fixed and partly variable in relation to output
C. Which increases per unit as output increases
D. Which remains the same for each unit of output
E. Which remains constant in total as output changes within the relevant range

Answer

Find Related Questions by Tags, levels, etc.

Tags: Costing, Fixed Cost, Overheads
Level: Level 1

Topic: Cost Classifications
Series: NOV 2022

MI – Nov 2022 – L1 – SA – Q2 – Cost Classifications

Identification of direct material as a cost type

Question

Direct material is an example of:
A. Fixed cost
B. Variable cost
C. Semi-variable cost
D. Semi-fixed cost
E. Overheads

Answer

Find Related Questions by Tags, levels, etc.

Tags: Direct Cost, Fixed Cost, Variable Cost
Level: Level 1

Topic: Cost Classifications
Series: NOV 2022

MI – Nov 2014 – L1 – SA – Q1 – Costing Techniques

Calculate variable and fixed costs using the high-low method based on monthly activity data.

Question

Use the high-low method to calculate the fixed and variable elements of the following costs:

Month	Activity	N
January	600	1,700
February	800	1,900
March	650	1,750
April	850	1,950
May	900	2,100
June	1,350	2,300

A. VC = N0.08/unit, FC = N1120
B. VC = N0.88/unit, FC = N1020
C. VC = N0.80/unit, FC = N1220
D. VC = N0.82/unit, FC = N1320
E. VC = N0.85/unit, FC = N1330

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Estimation, Fixed Cost, High-Low Method, Variable Cost
Level: Level 1

Topic: Costing Techniques
Series: NOV 2014

MI – May 2017 – L1 – SA – Q8 – Cost-Volume-Profit (CVP) Analysis

Calculate the break-even point in units.

Question

What will be the Break-even point, in units, where Total fixed cost = N240,000, Selling price = N24 per unit, and Variable cost = N18 per unit?
A. 20,000 units
B. 30,000 units
C. 40,000 units
D. 50,000 units
E. 60,000 units

Answer

Find Related Questions by Tags, levels, etc.

Tags: Break-even Analysis, Fixed Cost, Variable Cost
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2017

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

Question

A company budgets to sell 55,000 units of its products at N40 per unit for a variable cost of N15. If the fixed cost for the period is expected to be N340,000, then the contribution/sales ratio is:

A. 60.5
B. 61.5
C. 62.5
D. 63.5
E. 64.5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contribution margin, Contribution/Sales Ratio, Fixed Cost, Sales, Variable Cost
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2016

MI – May 2016 – L1 – SA – Q1 – Cost Classifications

Identifying cost behavior type when production hours vary and managerial requirements change.

Question

A company pays a manager a salary of N40,000 monthly when production is below 320 hours. When the production is between 320-640 hours, two managers would be required. This type of cost is called:

A. Fixed cost
B. Variable cost
C. Stepped variable cost
D. Stepped fixed cost
E. Semi-variable cost

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Analysis, Fixed Cost, Semi-Variable Costs, Stepped Costs, Variable Cost
Level: Level 1

Topic: Cost Classifications
Series: MAY 2016

QT – May 2017 – L1 – Q3b – Elements of Calculus

Use integration to calculate total cost from a marginal cost function with a given fixed cost.

Question

At the Zee manufacturing company, the marginal cost for producing $x$ gears, measured in hundreds, is:

If the fixed cost (the cost of producing zero items) is GH¢3000:

Required:

Determine the total cost for manufacturing 5000 gears.
(11 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fixed Cost, Integration, Marginal Cost, Total Cost
Level: Level 1

Topic: Elements of Calculus
Series: MAY 2017

IMAC – AUG 2022 – L1 – Q5 – Costs and Cost Behaviour

Establishment of total cost function using high-low method, profit calculation for a specific production level, and identification of advantages and disadvantages of high-low method.

Question

a) Takyi Carpentry makes twin-desk for local schools in the Daboase District. To facilitate control, the owner of the shop has asked you to assist him in analysing cost into fixed and variable elements.

Below is his six-year financial information:

Year	No. of Twin-Desk	Revenue (GH¢)	Profit (GH¢)
2016	1,800	19,600	6,000
2017	1,700	22,000	6,200
2018	1,750	20,300	5,800
2019	2,100	26,200	8,000
2020	1,950	22,400	7,500
2021	2,050	21,800	6,800

Required: i) Establish total cost function using high-low method. (5 marks)

ii) Calculate profit for making 3,500 units of the twin-desk if the selling price is fixed at GH¢20. (3 marks)

iii) Identify TWO (2) advantages and TWO (2) disadvantages of using high-low method. (4 marks)

iv) Identify THREE (3) importance for classifying cost as fixed and variable. (3 marks)

b) For managers within a company, exercising control through standards and standard costing is a creative program aimed at determining whether the organisations’ resources are being used optimally. Standard costs are typically determined during the budgetary control process because it uses predetermined standard costs for direct material, direct labour and factory overheads.

Required: Explain THREE (3) benefits to a company that uses standard costing. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Classification, Cost Function, Fixed Cost, High-Low Method, Profit Calculation, Variable Cost
Level: Level 1

Topic: Cost and Cost Behaviour
Series: AUG 2022

ICMA – Nov 2024 – L1 – Q5a – Cost Segregation and Estimation

Determine fixed and variable cost components using regression analysis and estimate total cost for a given production level.

Question

Month	Units (X)	Cost (Y)
January	5.8	40.3
February	7.7	47.1
March	8.2	48.7
April	6.1	40.6
May	6.5	44.5
June	7.5	47.1

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Estimation, Fixed Cost, Least Squares Method, Regression Analysis, Variable Cost
Level: Level 1

Topic: Cost Segregation and Estimation
Series: Nov 2024

QTB – May 2015 – L1 – SB – Q6 – Operations Research

This question involves calculating the change in revenue, total revenue, total cost, and total profit for a manufacturer based on given marginal cost and marginal revenue functions.

Question

A manufacturer determines that the firm’s Marginal Cost (MC) and Marginal Revenue (MR) functions are:

MR = R′(x)=100 + 0.1x

You are required to find the:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fixed Cost, Marginal Cost, Marginal Revenue, Profit, Total Revenue
Level: Level 1

Topic: Operations Research
Series: MAY 2015

MI – Nov 2022 – L1 – SA – Q7 – Cost Classifications

Definition of fixed costs in relation to output

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Costing, Fixed Cost, Overheads
Level: Level 1

Topic: Cost Classifications
Series: NOV 2022

MI – Nov 2022 – L1 – SA – Q2 – Cost Classifications

Identification of direct material as a cost type

Question

Direct material is an example of:
A. Fixed cost
B. Variable cost
C. Semi-variable cost
D. Semi-fixed cost
E. Overheads

Answer

Find Related Questions by Tags, levels, etc.

Tags: Direct Cost, Fixed Cost, Variable Cost
Level: Level 1

Topic: Cost Classifications
Series: NOV 2022

MI – Nov 2014 – L1 – SA – Q1 – Costing Techniques

Calculate variable and fixed costs using the high-low method based on monthly activity data.

Question

Use the high-low method to calculate the fixed and variable elements of the following costs:

Month	Activity	N
January	600	1,700
February	800	1,900
March	650	1,750
April	850	1,950
May	900	2,100
June	1,350	2,300

A. VC = N0.08/unit, FC = N1120
B. VC = N0.88/unit, FC = N1020
C. VC = N0.80/unit, FC = N1220
D. VC = N0.82/unit, FC = N1320
E. VC = N0.85/unit, FC = N1330

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Estimation, Fixed Cost, High-Low Method, Variable Cost
Level: Level 1

Topic: Costing Techniques
Series: NOV 2014

MI – May 2017 – L1 – SA – Q8 – Cost-Volume-Profit (CVP) Analysis

Calculate the break-even point in units.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Break-even Analysis, Fixed Cost, Variable Cost
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2017

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

Question

A company budgets to sell 55,000 units of its products at N40 per unit for a variable cost of N15. If the fixed cost for the period is expected to be N340,000, then the contribution/sales ratio is:

A. 60.5
B. 61.5
C. 62.5
D. 63.5
E. 64.5

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contribution margin, Contribution/Sales Ratio, Fixed Cost, Sales, Variable Cost
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2016

MI – May 2016 – L1 – SA – Q1 – Cost Classifications

Identifying cost behavior type when production hours vary and managerial requirements change.

Question

A company pays a manager a salary of N40,000 monthly when production is below 320 hours. When the production is between 320-640 hours, two managers would be required. This type of cost is called:

A. Fixed cost
B. Variable cost
C. Stepped variable cost
D. Stepped fixed cost
E. Semi-variable cost

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Analysis, Fixed Cost, Semi-Variable Costs, Stepped Costs, Variable Cost
Level: Level 1

Topic: Cost Classifications
Series: MAY 2016

QT – May 2017 – L1 – Q3b – Elements of Calculus

Use integration to calculate total cost from a marginal cost function with a given fixed cost.

Question

At the Zee manufacturing company, the marginal cost for producing $x$ gears, measured in hundreds, is:

If the fixed cost (the cost of producing zero items) is GH¢3000:

Required:

Determine the total cost for manufacturing 5000 gears.
(11 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fixed Cost, Integration, Marginal Cost, Total Cost
Level: Level 1

Topic: Elements of Calculus
Series: MAY 2017

IMAC – AUG 2022 – L1 – Q5 – Costs and Cost Behaviour

Establishment of total cost function using high-low method, profit calculation for a specific production level, and identification of advantages and disadvantages of high-low method.

Question

Below is his six-year financial information:

Year	No. of Twin-Desk	Revenue (GH¢)	Profit (GH¢)
2016	1,800	19,600	6,000
2017	1,700	22,000	6,200
2018	1,750	20,300	5,800
2019	2,100	26,200	8,000
2020	1,950	22,400	7,500
2021	2,050	21,800	6,800

Required: i) Establish total cost function using high-low method. (5 marks)

ii) Calculate profit for making 3,500 units of the twin-desk if the selling price is fixed at GH¢20. (3 marks)

iii) Identify TWO (2) advantages and TWO (2) disadvantages of using high-low method. (4 marks)

iv) Identify THREE (3) importance for classifying cost as fixed and variable. (3 marks)

Required: Explain THREE (3) benefits to a company that uses standard costing. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cost Classification, Cost Function, Fixed Cost, High-Low Method, Profit Calculation, Variable Cost
Level: Level 1

Topic: Cost and Cost Behaviour
Series: AUG 2022

Question Tag: Fixed Cost

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

ICMA – Nov 2024 – L1 – Q5a – Cost Segregation and Estimation

Determine fixed and variable cost components using regression analysis and estimate total cost for a given production level.

Required:

QTB – May 2015 – L1 – SB – Q6 – Operations Research

This question involves calculating the change in revenue, total revenue, total cost, and total profit for a manufacturer based on given marginal cost and marginal revenue functions.

MI – Nov 2022 – L1 – SA – Q7 – Cost Classifications

Definition of fixed costs in relation to output

MI – Nov 2022 – L1 – SA – Q2 – Cost Classifications

Identification of direct material as a cost type

MI – Nov 2014 – L1 – SA – Q1 – Costing Techniques

Calculate variable and fixed costs using the high-low method based on monthly activity data.

MI – May 2017 – L1 – SA – Q8 – Cost-Volume-Profit (CVP) Analysis

Calculate the break-even point in units.

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

MI – May 2016 – L1 – SA – Q1 – Cost Classifications

Identifying cost behavior type when production hours vary and managerial requirements change.

QT – May 2017 – L1 – Q3b – Elements of Calculus

Use integration to calculate total cost from a marginal cost function with a given fixed cost.

IMAC – AUG 2022 – L1 – Q5 – Costs and Cost Behaviour

Establishment of total cost function using high-low method, profit calculation for a specific production level, and identification of advantages and disadvantages of high-low method.

ICMA – Nov 2024 – L1 – Q5a – Cost Segregation and Estimation

Determine fixed and variable cost components using regression analysis and estimate total cost for a given production level.

Required:

QTB – May 2015 – L1 – SB – Q6 – Operations Research

This question involves calculating the change in revenue, total revenue, total cost, and total profit for a manufacturer based on given marginal cost and marginal revenue functions.

MI – Nov 2022 – L1 – SA – Q7 – Cost Classifications

Definition of fixed costs in relation to output

MI – Nov 2022 – L1 – SA – Q2 – Cost Classifications

Identification of direct material as a cost type

MI – Nov 2014 – L1 – SA – Q1 – Costing Techniques

Calculate variable and fixed costs using the high-low method based on monthly activity data.

MI – May 2017 – L1 – SA – Q8 – Cost-Volume-Profit (CVP) Analysis

Calculate the break-even point in units.

MI – May 2016 – L1 – SA – Q9 – Cost-Volume-Profit (CVP) Analysis

Calculate the contribution/sales ratio given the budgeted sales and costs.

MI – May 2016 – L1 – SA – Q1 – Cost Classifications

Identifying cost behavior type when production hours vary and managerial requirements change.

QT – May 2017 – L1 – Q3b – Elements of Calculus

Use integration to calculate total cost from a marginal cost function with a given fixed cost.

IMAC – AUG 2022 – L1 – Q5 – Costs and Cost Behaviour

Establishment of total cost function using high-low method, profit calculation for a specific production level, and identification of advantages and disadvantages of high-low method.

Our offerings

Contact Info

Customer

Get In Touch