Setup Cost Multiple Choice Questions with Answers – PDF Download

MCQ 1: A cost, consists of some fixed and some variable cost with respect to machine setup hours is termed as:

1. setup cost
2. batch cost
3. facility cost
4. lump sum cost

MCQ 2: If the salaries of engineers are $3000, the salaries of supervisors are $4000 and the equipment leasing cost is $3000, then fixed setup costs will be:

1. $10,000
2. $1,000
3. $7,000
4. $4,000

MCQ 3: If the fixed setup cost is $32000 and the variable setup cost is $12000, then the setup cost will be:

1. $20,000
2. $34,000
3. $44,000
4. $35,000

MCQ 4: If the fixed setup cost is $21000 and the variable setup cost is $11000, then the setup cost would be:

1. $12,000
2. $15,000
3. $10,000
4. $32,000

MCQ 5: If the cost of indirect support labor is $5000, equipment maintenance setup cost is $7000 and machinery leasing cost is $4000 then variable fixed cost will be:

1. $16,000
2. $12,000
3. $18,000
4. $21,000