Fixed costs are costs that:A) Change in total with changes in the level ofactivityB) Remain constant per unit with changes in thelevel of activityC) Remain constant in total regardless of changes inthe level of activityD) Vary inversely with changes in the level of activity

The correct answer is:C) Remain constant in total regardless of changes in the level of activity…

Answered: Fixed costs are costs that: A) Change…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9MC: Fixed costs are expenses that ______________________________ . A. vary in response to changes in...

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Similar questions

Which of the following statements is true regarding average fixed costs? A. Average fixed costs per unit remain fixed regardless of level of activity. B. Average fixed costs per unit rise as the level of activity rises. C. Average fixed costs per unit fall as the level of activity rises. D. Average fixed costs per unit cannot be determined.
Fixed costs are expenses that ______________________________ . A. vary in response to changes in activity level B. remain constant on a per-unit basis C. increase on a per-unit basis as activity increases D. remain constant as activity changes
Describe how total variable costs and unit variable costs behave with changes in the level of activity
Variable costs are expenses that ____________________________ . remain constant on a per-unit basis but change in total based on activity level remain constant on a per-unit basis and remain constant in total regardless of activity level decrease on a per-unit basis as activity level increases remain constant in total regardless of activity level within a relevant range
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 unit
Which of the following graphs best illustrates fixed costs per unit as the activity base changes?
Describe how total fixed costs and unit fixed costs behave with changes in the level of activity.
In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
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
When 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: vary inversely proportional with changes in activity Remain constant as activity changes Decrease on a per unit basis as activity increases Remain constant on a per unit basis as activity changes
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

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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