FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Q2. Describe how total variable costs and unit variable costs behave with changes in the level of activity?
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- How is life-cycle-cost analysis useful?arrow_forwardIn the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept of the cost equation. total costs that do not vary with changes in the activity level. activity level used to estimate the dependent variable. slope of the cost equation.arrow_forward36.A cost increases or decreases in intervals as activity changes. a. historical cost b. step cost c. fixed cost d. flexible cost e. budgeted costarrow_forward
- Describe how total variable costs and unit variable costs behave as the level of activity increases?arrow_forwardvariable costs change in direct proportion to a change in the activity level. True or False?arrow_forwardA scatter graph is used to test the assumption that the relationship between cost and activity level is ________. Question 8Select one: a. unpredictable b. curvilinear c. linear d. cyclicalarrow_forward
- Q2) short answer: 1. What is variable cost and fixed cost? ___________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. What is Break Even Point? ___________________________________________________________________________________________________________________________________________________________________________________________________…arrow_forwardUnderstand how fixedand variable costs behave andhow to use them to predictcosts.arrow_forwardVariable 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 changesarrow_forward
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