TRUE OR FALSE.1. If volume increases, all costs will increase.2. Changes in the level of activity will cause unit variable and unit fixed costs to change in oppositedirections3. The high-low method is used in classifying a mixed cost into its variable and fixed elements.4. A mixed cost has both selling and administrative cost elements.5. For planning purposes, mixed costs are generally grouped with fixed costs.6. Contribution margin is the amount of revenues remaining after deducting cost of goods sold.7. Both variable and fixed costs are included in calculating the contribution margin

"Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

RUE OR FALSE. 1. If volume increases, all costs will increase. 2. Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite directions 3. The high-low method is used in classifying a mixed cost into its variable and fixed elements.

RUE OR FALSE. 1. If volume increases, all costs will increase. 2. Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite directions 3. The high-low method is used in classifying a mixed cost into its variable and fixed elements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

TRUE OR FALSE.
1. If volume increases, all costs will increase.
2. Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite
directions
3. The high-low method is used in classifying a mixed cost into its variable and fixed elements.
4. A mixed cost has both selling and administrative cost elements.
5. For planning purposes, mixed costs are generally grouped with fixed costs.
6. Contribution margin is the amount of revenues remaining after deducting cost of goods sold.
7. Both variable and fixed costs are included in calculating the contribution margin

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