On a graph, if a horizontal axis represents units of production and the vertical axis represents total costs, the total variable costs line would be shown as a(n): Question 4 options: horizontal line. vertical line. upward sloping line. downward sloping lin
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Question 4 options:
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horizontal line.
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vertical line.
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upward sloping line.
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downward sloping line.
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- On a CVP graph, the total cost line intersects the vertical (dollars) axis at a. the origin. b. the level of the fixed costs. c. the breakeven point. d. the level of the variable costs.Select the correct statement concerning the cost-volume-profit graph at right: a. The point identified by "B" is the break-even point. b. Line F is the variable cost line. c. At point B, profits equal total costs. d. Line E is the total cost line. Line F Line E Line DOn a graph, the Total Variable costs line appears to be horizontal in nature. True False
- In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O FalseSelect the correct statement concerning the cost-volume-profit graph at right: At point B, profits equal total costs. Line E is the total cost line. Line F is the variable cost line. The point identified by "B" is the break-even point.The intercept (straight line) on a graph of the linear cost function represents ....... cost
- Answer the following: 1. The slope of line A is equal to the: a. fixed cost per unit. b. selling price per unit. c. profit per unit. d. semivariable cost per unit. e. unit contribution margin. 2. Line C represents the level of: a. fixed cost. b. variable cost. c. semivariable cost. d. total cost. e. mixed cost. 3. Line B represents the level of: a. fixed cost. b. variable cost. c. semivariable cost. d. total cost. e. mixed cost. 4. The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c. variable cost per unit. d. profit per unit. e. unit contribution margin. 5. Line A is the: a. total revenue line. b. Option 2 c. fixed cost line. d. variable cost line. e. total cost line. f. profit line.The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line c.the total variable cost line d.the total fixed cost lineWhich 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.
- Distinguish between (a) cost behavior and (b) a mixed cost, and (c) a step-variable cost. Plot the three costs on a graph, with activity plotted horizontally and cost plotted vertically.Which of the following are assumptions associated with the cost equation? Check all that apply. The cost equation is used to estimate costs at a variety of volume levels Cost estimates are valid within a discrete range of volumes Per unit variable costs represent the slope of a cost equation Cost equations are linearThe “line of best fit” may also be described as: a.the total variable cost line b.the total fixed cost line c.an asymptote d.the total cost line