What is the definition of a variable cost? Multiple Choice The total cost (materials, labor, and overhead) is divided by the number of units of output. A cost that varies with the cost driver, but in discrete steps within the relevant range; is also called a semi-fixed cost. A cost that changes in total in response to changes in one or more cost drivers. A cost that, within the relevant range, includes both variable and fixed cost components. The portion of the total cost that, within the relevant range, does not change with a change in the quantity of a designated cost driver.

Q: Explain unit product cost under variable costing.

A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…

Q: Based on the behavior shown in the following table, which of the following is a variable cost? Units…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Q: A graph that provides a visual representation of the relationship between total cost and activity…

A: The scattergraph provides a visual depiction of how changes in one variable may be connected to…

Q: explain fixed and variable costs within a relevant range of production

A: The objective of this question is to understand the concepts of fixed and variable costs within a…

Q: Given the following, the only item that will generally be included in relevant cost analysis is:…

A: Introduction:   The phrase "relevant cost" in managerial accounting refers to avoidable costs that…

Q: Within the relevant range of activity fixed costs remain constant in total costs and activity can be…

A: A certain activity level that is limited by a minimum and maximum quantity is referred to as the…

Q: The relevant range of activity costing is: Select one: O a. Is the cost that causes change in total…

A: Under activity costing, indirect costs or overhead are allocated to products or jobs on the basis of…

Q: Selling and administrative expenses are considered to be: a. A period cost under variable costing b.…

A: Selling  expenses means the expense incurred while selling the goods like sale men commission , sale…

Q: 2) Which of the following is the type of cost calculated with a scientific and engineering approach…

A: A company will incur various costs to earn revenue. The costs can be either direct or indirect costs…

Q: 1.An activity that has a direct cause-effect relationship with the resources consumed is a(n) Group…

A: In activity based costing the cost are apportioned based on the respective cost drivers

Q: Which of the following statements is true? Multiple Cholce Varlable costing treats direct materials…

A: The period costs are the costs which are expensed in the period they are incurred. Example selling…

Q: Under direct/marginal costing, a unit of product includes which costs? direct material, direct…

A: Marginal costing is the method of determining the operating income. It separately shows the variable…

Q: Distinguish between the single-rate and the dual-rate methods. The single-rate (cost-allocation)…

A: Cost Allocation: The process of assigning the cost to the cost object is cost allocation. The cost…

Q: . If the coefficient of correlation for machine hours is higher than the coefficient of correlation…

A: The coefficient of correlation is a measure that calculates the relationship between two variables.…

Q: Explain how variable costing system costing is used to calculate the cost of goods manufactured.…

A: (1)  Variable costing system The variable costs are included in the product cost in variable…

Q: Question: In a manufacturing setting, direct labor costs are considered: a) Variable costs b) Fixed…

A: Variable costs - Fixed costs - Mixed costs- Overhead costs

Q: Identify the costs included under variable costing.

A: The costs can be distinguished as variable and fixed costs.

Q: The term "relevant range" means the range over which: a particular cost formula is valid. production…

A: Lets understand the basics.Cost accounting is that branch of accounting in which all costs incurred…

Q: Within the relevant range of activity, variable cost per unit will:

A: Costs classification means grouping costs according to their common characteristics. On the basis of…

Q: In your own words, explain the difference between absorption costing and variable costing methods.…

A: Absorption costing: Its also called as Full costing.

Q: Which of the following statement about Activity Based Costing is true? a)  Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: Variable manufacturing overhead costs are treated as period costs under both absorption and variable…

A: Variable manufacturing overhead cost is treated as product cost under both absorption and variable…

Q: Which of the following statements are true? Multiple select question. Within the relevant range…

A: The objective of the question is to identify the correct statements about fixed costs in the context…

Q: ost classifications used for assigning costs to cost objects include: Multiple Choice Variable cost…

A: Cost Classification Determining the cost in the organisation is one of the important part in the…

Q: "Under variable costing system, the unit product cost includes:"     "Direct materials, direct…

A: Variable costs are those costs which changes directly with change in level of activity. If level of…

Q: What is the unit product cost under variable costing

A: Variable Cost :— It is the cost that changes with change in units. It is constant in per unit for…

Q: single-rate method is when all indirect costs are combined in one cost po cated to cost objects via…

A: The overhead rate is a cost allocated to the production of a product or service. Overhead costs are…

Q: Assuming that direct labor is a variable cost, the primary difference between the absorption and…

A: Major difference between absorption and variable costing is fixed cost allocation across all units…

Q: Which of the following statements is true? *   A. The traditional approach to costing uses many…

A: Cost accounting is one of the branches of accounting. Under this, all costs related to the product…

Q: Describe how total variable costs and unit variable costs behave as the level of activity increases?

A: Variable cost varies with the changing level of activity i.e. if the activity increases the variable…

Q: What costs are assigned to a segment under the contribution approach? Distinguish between a…

A: The first part of the question is asking about the costs that are assigned to a segment under the…

Q: Please indicate which are product costs and which are period costs.   Under Absorption Costing:…

A: Solution:- Under Absorption Costing:- Absorption costing consists direct materials, direct labor,…

Q: Which of the following best defines standard costing?   a. It is the same as actual costing but…

A: The method of calculating the cost of a manufacturing process is known as standard costing. It's a…

Q: Variable costing can also be referred to as: Select one: a. Internal costing b. Cost-plus costing c.…

A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…

Q: Total variable costs are deducted from Total mixed costs to obtain which of these? Group of answer…

A: The objective of the question is to understand what we get when we subtract total variable costs…

Q: When materials costs differ significantly among products in a value stream, the valuestream product…

A: In contrast to traditional costing, value stream costing is an accounting technique for tracking…

Q: Describe how total fixed costs and unit fixed costs behave as the level of activity increases

A: Fixed costs are those costs that remain fixed irrespective of the level of activity.

Q: Describe income statement under variable costing.

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: What is the key difference between Absorption and Variable Costing?   A Full Costing treats…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Explain the impact of an increase in the level of activity (or cost driver) on (a) total fixed cost…

A:

Q: Which of the following is considered part of the product costs under absorption costing but not…

A: The objective of the question is to identify the cost that is considered as part of the product…

Q: CVP o

A: Cost in accounting refers to the amount, that is incurred to generate revenue for the business. The…

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.