If Five Bags of Sugar Make 1,500 Cookies, How Many

question 94

Multiple Choice

If five bags of sugar make 1,500 cookies, how many bags of sugar will it take to make 12,000 cookies?

• A)40
• B)45
• C)35
• D)50

---

Definitions:

Absorption Costing

A costing method that includes all manufacturing costs, direct materials, direct labor, and both variable and fixed manufacturing overhead, in the cost of a product.

Cost Structure

The relative proportion of fixed, variable, and mixed costs in an organization.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and manufacturing overhead.

Common Fixed Expenses

Expenses that remain constant in total amount and are not affected by changes in business activity level, shared across multiple business segments or products.