FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- A 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_forward2. The variable cost per unit of activity increases as activity increases.⦁ True⦁ Falsearrow_forwardRelevant range is the activity that affects the increase or decrease of costs Select one: O True O False Previo m Jump to... Return to: General +arrow_forward
- When the level of activity decreases, variable costs will:A - increase per unit.B - increase in total.C- decrease in total.D- decrease per unitarrow_forwardShow 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_forwardFixed 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_forward
- When the level of activity decreases, variable cost will increase or decrease ?arrow_forwardWithin the relevant range, as volume of activity increases a. Total fixed costs remain the sameb. Fixed cost per unit decreasesc. Variable cost per unit remains the samed.Total variable costs increasese. all of the abovearrow_forwardA cost that cannot be changed because it arises from a past decision and is irrelevant to future decisions is a. An uncontrollable cost. d. An opportunity cost. b. An out-of-pocket cost. e. An incremental cost. c. A sunk cost.arrow_forward
- Give an example how manager can decrease variable cost while increasing fixed costarrow_forwardIn the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?arrow_forwardAs the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effectarrow_forward
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