FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What effect does an increase in volume have on—
c. Total fixed costs?
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- Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the samearrow_forwardDescribe how total fixed costs and unit fixed costs behave as the level of activity increases?arrow_forwardWhich of the following describes the behavior of total variable and total fixed costs when level of production increases?arrow_forward
- 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 activityarrow_forwardWhen the level of activity decreases, variable cost will increase or decrease ?arrow_forwardWhat are direct out-of-pocket costsarrow_forward
- A cost that has characteristics of both a variable cost and a fixed cost is called a Oa. variable/fixed cost Ob. sunk cost Oc. discretionary cost Od, mixed costarrow_forwardIn the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?arrow_forwardWhich type of cost has an unchanging total expense and a decreasing average expense as output increases?arrow_forward
- What effect does an increase in sales price have on contribution margin? An increase in fixed costs? An increase in variable costs?arrow_forwardWhat are “initial direct costs” and how are they accounted for by lessees and lessors?arrow_forwardIncreasing variable cost while decreasing fixed costarrow_forward
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