Assuming Costs Are Represented on the Vertical Axis and Volume

question 49

Multiple Choice

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that is parallel to the horizontal axis?

• A)total direct material costs
• B)a consultant paid £75 per hour with a maximum fee of £1,200
• C)employees who are paid £10 per hour and guaranteed a minimum weekly wage of £200
• D)rent on exhibit space at a convention

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Definitions:

IFRS 9

Financial Instruments, a segment of the International Financial Reporting Standards that addresses the accounting for financial instruments, providing guidance on classification, measurement, impairment, and hedging.

Unrealized Gains And Losses

Increases or decreases in the value of investments or other assets that are not yet sold, thus not officially recorded as income or loss.

Equity Investments

Investments in shares of other companies that grant the holder ownership interests or stakes in the entities.

ASPE

Accounting Standards for Private Enterprises; a set of accounting practices and principles for private companies in Canada.