Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in direct proportion to the increase in activity d. increases, but at a slower rate than the level of activity.
Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…
A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…
Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…
A: The different costs of production are classified as fixed costs and variable costs. The fixed cost…
Q: Fixed cost per unit ______ A
A: Under Marginal costing technique there are two types of costs . That is a) Fixed costs Fixed cost…
Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…
A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…
Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…
A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…
Q: Which costs will change with a decrease in activity within the relevant range? Unit variable cost…
A: Cost can be classified into two categories i.e fixed cost and variable cost. The fixed cost remains…
Q: When the units manufactured increases, the most significant change in average unit cost will be…
A: When there is increase in the units manufactured, the non-variable cost will be apportioned to more…
Q: Fixed costs per unit increase proportionately with increases in volume of activity within the…
A:
Q: What is characteristic of variable costs within the relevant range? A. Decrease in total as as…
A: Variable costs within the relevant range has following characteristics :- Total variable cost…
Q: When variable costs increase and all other variables remain unchanged, the break-even point will:…
A: Variable Cost refers to those Cost which are Variable on nature that means they are changed with the…
Q: Compute the Revenue Effect- Growth Component, indicate if favorable/(unfavorable). *The activity…
A: Revenue refers to the amount received by the company from selling goods and services to the…
Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…
A: Variable costs: These are the costs that proportionately change with the changes in the activity…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…
Q: When variable costs increase and all other variables remain unchanged, the break-even point will…
A: The break even point is incurred when all the costs are covered by the sales and there is no profit…
Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…
A: Fixed cost will change and total cost will remain the same.
Q: When activity volume decreases in the short term, which of the following is true? (hint: some costs…
A: VC per unit remains constant as the total VC changes with direct proportion to the volume of output.…
Q: A decrease in production will result in an increase in Total Variable Cost True False
A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…
Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…
A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…
Q: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…
A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…
Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately…
A: Answer 1. As activity increases, unit variable cost increases proportionately with activity.
Q: If the variable cost per unit goes down, Contribution margin Break-even point a. increases…
A:
Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…
A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…
Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…
A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…
Q: Variable costs are expenses that ________. a.remain constant on a per-unit basis but change in…
A: Variable costs as the name suggests are those costs which are variable in nature or these costs will…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: Contribution margin is the difference of sales price per unit and variable cost per unit.
Q: Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and…
A: Variable costs is one of the one of the component of the total cost. Variable cost is the cost which…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…
A: Fixed cost in total remains constant. They will not change by change in production.
Q: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…
Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…
A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…
Q: When the level of output increases within the relevant range, _____. a.fixed cost per unit does…
A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The bteak even sales are the sales where business earns no profit no loss during the period.
Q: When the level of activity increases, total fixed costs a. decrease. b. remain the same. c.…
A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…
Q: Variable costs are costs that: a) Vary inversely proportional with changes in activity b) Remain…
A: Total variable costs increase with the increase in activity and decrease with the decrease in…
Q: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…
A: Variable costs: Variable costs are those costs that change in proportion to change in the production…
Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…
A: Option c is the answer.
Q: Show how each of these costs will behave as the volume of activity decreases.…
A: The volume of activity directly impacts the variable cost because the variable cost changes directly…
Q: Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit…
A: Variable costs: These are the costs that vary depending on the volume of the activity. Fixed costs:…
Q: Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain…
A: Variable cost : Variable costs are constant per unit and change in total while fixed costs always…
Q: Fixed costs are costs that: Select one: a. Neither of the above b. remain the same per unit at every…
A: Fixed Cost Correct Answer = Option B = Remain the same per unit at every activity level Variable…
Q: Variable costs are costs that: Select one: a. Both (a) and (b) above. b. vary in total directly and…
A: The costs incurred in production can be classified as variable cost, fixed cost and mixed cost.
Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: Which of the following defines variable cost behavior? a. Total cost reaction to increase in…
A: The variable cost is the cost that affects in the direct proportion to the units of activity in…
Q: Which of the following describes the behavior of the fixed cost per unit? Decreases…
A: Fixed cost is the cost that remains constant irrespective of the level of production. Whereas…
Q: Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of…
A: The monetary value paid for the acquisition of something, or to run the operations of the…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: In the fixed cost per unit does the it increase as activity decreases and will decrease as activity…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Variable costs are costs that: vary inversely proportional with changes in activity Remain constant…
A: Variable cost refers to the cost that varies in total amount with the changes units produced by the…
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- When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unitWhen the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain constant as activity changes C.Decrease on a per unit basis as activity increases D.Remain constant on a per unit basis as activity changes
- Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the sameWhich of the following is correct concerning reactions to INCREASES in activity? Variable Cost Per Unit A) B) C) D) Total Variable Cost Increase Constant Decrease Increase Decrease Decrease Constant ConstantWhen fixed costs increase and all other variables remain unchanged, the contribution margin will ________.A. remain unchangedB. increaseC. decreaseD. increase variable costs per unit
- R-squared is a measure of a. The spurious relationship between cost and activity b. The fxed cost component C The variable cost per unit activity d. How well the regression line accounts for the changes in the dependent variableThe increase/decrease in variable cost from existing level to the new level is called as __cost. a.Standard b.Marginal c.Fixed d.OpportunityVariable costs are costs that: a) Vary inversely proportional with changes in activity b) Remain constant as activity changes c) Decrease on a per unit basis as activity increases d) Remain constant on a per unit basis as activity changes
- When fixed costs increase and all other variables remain unchanged, the contribution margin will ________. a.remain unchanged b.increase variable costs per unit c.decrease d.increaseWhich one of the following statement best describe the unit variable cost: Select one: O a. Remains constant in the relevant range O b. Increase with the increase of activities O c. Increase with the decrease of activities O d. Decrease with the increase of activities1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately with activity, decreases by a fixxed amount, decreases proportionately with activity, remains constant? 2. Variable cost are costs that, Vary inversely with changes in activity, increase on per-unit basis as activity increases, decrease on a per unit basis as activity increases, remains constant as activity changes, vary directly with changes in activity?