Answered: A cost increases or decreases in…

A cost increases or decreases in intervals as activity changes. a. historical cost b. step cost c. fixed cost d. flexible cost e. budgeted cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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: Q.How do managers plan for variable overhead costs?

A: The cost which is dependent upon the level of output and changes if the level of output fluctuates…

Q: Which of the following is called minimum point of production at which total cost is recovered:…

A: The margin of safety sales is calculated as difference between current sales and break even sales.

Q: Which of the following is called minimum point of production at which total cost is recovered:

A: Total cost recovery is the point under which the entity does not make any profit or loss That is…

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: If the level of activity increases within the relevant range, which of the following will also…

A: Fixed costs are those costs which do not change as the volume of production increases or decreases.…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

Q: A graph that provides a visual representation of the relationship between total cost and activity…

A: The scattergraph provides a visual depiction of how changes in one variable may be connected to…

Q: Within the relevant range of activity fixed costs remain constant in total costs and activity can be…

A: A certain activity level that is limited by a minimum and maximum quantity is referred to as the…

Q: The relevant range of activity costing is: Select one: O a. Is the cost that causes change in total…

A: Under activity costing, indirect costs or overhead are allocated to products or jobs on the basis of…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

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: 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: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

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: What effect does an increase in volume have on—c. Total fixed costs?

Q: a predetermined application rate for conversion costs is based on actual conversion costs divided by…

A: Conversion costs are costs that are incurred for converting raw materials of the business into…

Q: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…

A: Fixed cost is not affected by the changes in the level of activity.

Q: Within a relevant range, costs that increase in direct proportion to volume are: Question 9…

A: Variable costs are proportional to the level of output within a relevant range. On the other hand,…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: Variable costs per unit are affected by an increase or decrease in activity. True or False True…

A: Variable Cost is that type of cost which is associated with the number of units produced or volume…

Q: Costs that change in total but not proportionately with changes in the activity level are mixed…

A: The costs incurred during the production process can be classified as fixed, variable and mixed…

Q: A fixed cost total rises or falls in approximate proportion to changes in activity base. Select one:…

A: The costs incurred can be defined as fixed Cost and variable cost

Q: Which one of the following is an example for variable cost? O a. Salary with commission O b.…

A: Variable cost is a cost that keeps on changing with the changes in the level of activity.

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: 4.A scatter graph is used to test the assumption that the relationship between cost and…

A: Explanation and answer is given below,

Q: Which of the following is correct concerning reactions to INCREASES in activity? Variable Cost Per…

A: Expenses that change in direct proportion to the volume of output or activity in a business are…

Q: Question 4: Define the following:…

A: Variable cost refers to that cost which variate with the variations in the production or sales…

Q: The cost that vary accordingly to the volume of output is O a. Variable cost O b. Both fixed and…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

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: In what fundamental ways does activity-based costing differ from traditional costing methods?

A: Costing is a process through which total expenditure incurred in the production or manufacturing of…

Q: Full costing is often supported on the grounds that it provides a useful guide to costs.

A: Full costing, also known as absorption costing, is a method of costing that includes both direct and…

Q: iable costs change in direct proportion to a change in the activity level. True or False?

A: There are two types of one is fixed cost and other is variable cost and both are part of the total…

Q: A scatter graph is used to test the assumption that the relationship between cost and activity level…

A: There is a systematic relationship between costs and activity level. In accounting we see that the…

Q: Target costing is reversal of: a. Skimming pricing b. Marginal cost c. Penetrating pricing d. Cost…

A: Solution: Target costing is reversal of "cost plus model". This is because under target costing,…

Q: Relevant range is the activity that affects the increase or decrease of costs Select one: O True…

A: Lets first understand the meaning of relevant range. Relevant range is a range at which fixed cost…

Q: Variable costing can also be referred to as: Select one: a. Internal costing b. Cost-plus costing c.…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

36.A cost increases or decreases in intervals as activity changes.

a. historical cost

b. step cost

c. fixed cost

d. flexible cost

e. budgeted cost

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

4. In a typical cost formula a. Fixed costs are per unit and variable costs are per unit b. Fixed costs are per unit and variable costs are in total c. Fixed costs are in total and variable costs are in total Fixed costs are in total and variable costs are per unit
When the level of activity decreases, variable costs will:A - increase per unit.B - increase in total.C- decrease in total.D- decrease per unit
Total variable costs are deducted from Total mixed costs to obtain which of these? Group of answer choices Budgeted costs. Mixed costs per unit. Fixed costs per unit. Total fixed costs.
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
8. Which costing techniques are related to a predetermined cost as a performance target, and actual performance is measured against this predetermined cost? a. Uniform Costing b. Standard Costing c. Budgetary Control d. Marginal Costing
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 same
Explain the impact of an increase in the level of activity (or cost driver) on (a) total fixed cost and (b) fixed cost per unit of activity.
1. Volume variance exists only under Group of answer choices a. Throughput costing b. Variable costing c. Full costing d. Direct costing
Fixed costs are costs that: A) Change in total with changes in the level of activity B) Remain constant per unit with changes in the level of activity C) Remain constant in total regardless of changes in the level of activity D) Vary inversely with changes in the level of activity
Subject:- Accounting
When the level of activity decreases, variable cost will increase or decrease ?
What happens to the total variable costs and the total fixed costs when the level of activity increases or decreases? How about the unit variable cost and the unit fixed cost?