UNIT 3 — MILESTONE 3
12/13
12/ 13 <O that’s 92% ‘ RETAKE ‘
(A 12 questions were answered correctly.
1 question was answered incorrectly.
T @
Sighing a lease for a new retail space is classified as which type
of cost?
Mixed Cost
O
O Step P Cost
Variable Cost
O
Fixed Cost
© O
RATIONALE
A lease is a fixed cost, since the cost remains the same no
matter how many units are sold. Fixed costs remain constant in
the total dollar amount over the relevant range.
CONCEPT
— Cost Behavior
Report an issue with this question
, UNIT 3 — MILESTONE 3
12/13
statement of cash flows?
O Financing g outflow
Investing outflow
O
O Financing g inflow
Q ° Operating
P g outflow
RATIONALE
A company would reflect cash payments for taxes as an
operating outflow on the statement of cash flows. Making a
payment consists of an outflow of cash and the payment of
taxes occurs as a result of normal operations.
CONCEPT
— Introduction to the Statement of Cash Flows
Report an issue with this question
3 @
Rand Company has sales of $200,000, variable expenses of
$90,000, and fixed costs of $60,000.
What is Rand’s operating leverage and what does that mean to
Rand Company?
12/13
12/ 13 <O that’s 92% ‘ RETAKE ‘
(A 12 questions were answered correctly.
1 question was answered incorrectly.
T @
Sighing a lease for a new retail space is classified as which type
of cost?
Mixed Cost
O
O Step P Cost
Variable Cost
O
Fixed Cost
© O
RATIONALE
A lease is a fixed cost, since the cost remains the same no
matter how many units are sold. Fixed costs remain constant in
the total dollar amount over the relevant range.
CONCEPT
— Cost Behavior
Report an issue with this question
, UNIT 3 — MILESTONE 3
12/13
statement of cash flows?
O Financing g outflow
Investing outflow
O
O Financing g inflow
Q ° Operating
P g outflow
RATIONALE
A company would reflect cash payments for taxes as an
operating outflow on the statement of cash flows. Making a
payment consists of an outflow of cash and the payment of
taxes occurs as a result of normal operations.
CONCEPT
— Introduction to the Statement of Cash Flows
Report an issue with this question
3 @
Rand Company has sales of $200,000, variable expenses of
$90,000, and fixed costs of $60,000.
What is Rand’s operating leverage and what does that mean to
Rand Company?
