ACC406 MIDTERM REVIEW EXAM
WITH CORRECT QUESTIONS AND
ANSWERS 2025
Indirect CostCORRECT-ANSWERSHard to trace
Example: The transportation of pizza toppings, the wages for the employees
Direct CostCORRECT-ANSWERSEasy to trace, physically observed
Behaviour of fixed costCORRECT-ANSWERSWhen the cost stays constant whether or not the
output increases or decreases
Mixed costCORRECT-ANSWERSThe combination of variable and fixed cost.
Behaviour of variable costCORRECT-ANSWERSThe cost varies in proportion to the output
increase or decrease
Characteristics of Financial Accounting (5)CORRECT-ANSWERSExternal, historical, must follow
rules, objective, information about the entire firm as a whole
WITH CORRECT QUESTIONS AND
ANSWERS 2025
Indirect CostCORRECT-ANSWERSHard to trace
Example: The transportation of pizza toppings, the wages for the employees
Direct CostCORRECT-ANSWERSEasy to trace, physically observed
Behaviour of fixed costCORRECT-ANSWERSWhen the cost stays constant whether or not the
output increases or decreases
Mixed costCORRECT-ANSWERSThe combination of variable and fixed cost.
Behaviour of variable costCORRECT-ANSWERSThe cost varies in proportion to the output
increase or decrease
Characteristics of Financial Accounting (5)CORRECT-ANSWERSExternal, historical, must follow
rules, objective, information about the entire firm as a whole