In: Accounting
Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost sales?
a. |
prevention costs. |
b. |
appraisal costs. |
c. |
internal failure costs. |
d. |
external failure costs. |
2. Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent?
a. |
irrelevant range. |
b. |
relevant range. |
c. |
short-range. |
d. |
long-range. |
3. J-Mobile provides cellular phone and Internet services with a plan that provides up to 1,000 minutes of airtime usage for a flat rate of $99.99 per month plus a charge for any minutes used over this amount at the rate of $0.10 per minute in excess of the minimum 1,000 airtime minutes. Which of the following describes the cost of the J-Mobile service?
a. |
fixed cost, only. |
b. |
variable cost, only. |
c. |
semi-variable cost. |
d. |
semi-fixed cost. |
1
Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost sales?
Answer: external failure costs.
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2
Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent?
Answer: relevant range.
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3
J-Mobile provides cellular phone and Internet services with a plan that provides up to 1,000 minutes of airtime usage for a flat rate of $99.99 per month plus a charge for any minutes used over this amount at the rate of $0.10 per minute in excess of the minimum 1,000 airtime minutes. Which of the following describes the cost of the J-Mobile service?
Answer: semi-variable cost.