In representing the total manufacturing costs in the equation Y=a+bX, “a ” in the equation represents the amount of total fixed costs while the “bX” represents the amount of Level of activity Total manufacturing costs Total variable manufacturing costs Variable cost per unit Group of answer choices

1

Which of the following is NOT an example of Prime Cost? A. Manufacturing wagesB. Direct wagesC. Indirect wagesD. Royalties

Manufacturing costs include selling and administrative costs. Select one: O a. TRUE O b. FALSE

On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the: a. margin of safety point b. total cost point c. breakeven point d. unit contribution margin

Question Content Area Which of the following graphs in Figure 1 illustrates the behavior of a total variable cost?

A changes in direct proportion to changes in the cost-driver level * mixed costs fixed costs O variable costs O step cost

What is the high-low method used to estimate? a. variable costs and production capacity b. total costs and recommended sales price c. cost per unit produced and total fixed costs d. management salaries and estimated production time

Which of the following statements related to CVP chart is not true? O a. To determine the variable cost per unit from a graph, the change in cost is divided by the change in units. O b. The scatter graph method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O c. The slope of the total cost line determines the variable cost per unit. O d. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. e. The intercept between the total cost line on a graph and the y-axis determines the fixed cost. f. None of the given answers.

Assume that the average cost function of a company is described by the following equation: AC = 2 x Q2 - 16Q + 90 At what production quantity, that is at what number of units, is the average cost at a minimum? a) 2 b) 3 c) 4 d) 6 please show calculation and method