Page 72 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 72
Chapter 4
Test your understanding 7
An entity carries out repairs on customers’ electrical items. Consider the
following costs and decide if it is a direct or indirect cost and if it is fixed or
variable.
Direct/Indirect Fixed/Variable
Business rates for repair shop
Salary of repair shop supervisor
Repair person paid per repair
carried out
Electricity for recharging repair tools
Test your understanding 8
A company increase its activity with the relevant range. Tick the correct boxes
below to indicate the effects on costs.
Increase Decrease Remains the same
Total variable costs
Total fixed costs
Variable cost per unit
Fixed cost per unit
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