Which of the following is correct concerning reactions to INCREASES in activity?Variable CostPer UnitA)B)C)D)TotalVariable CostIncreaseConstantDecreaseIncreaseDecreaseDecreaseConstantConstant Multiple ChoiceOChoice AChoice DChoice CChoice B

Expenses that change in direct proportion to the volume of output or activity in a business are…

Which of the following is correct concerning reactions to INCREASES in activity? Variable Cost Per Unit Total Variable Cost A) Increase B) Constant C) Decrease D) Increase Decrease Decrease Constant Constant

Which of the following is correct concerning reactions to INCREASES in activity? Variable Cost Per Unit Total Variable Cost A) Increase B) Constant C) Decrease D) Increase Decrease Decrease Constant Constant

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

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

Which of the following is correct concerning reactions to INCREASES in activity?
Variable Cost
Per Unit
A)
B)
C)
D)
Total
Variable Cost
Increase
Constant
Decrease
Increase
Decrease
Decrease
Constant
Constant

Multiple Choice
O
Choice A
Choice D
Choice C
Choice B

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Solve 2 questions numbers 5 and 9 with steps please.
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When the level of activity decreases, variable cost will increase or decrease ?
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5. Which of the following statements is correct: A. total fixed cost remain constant while variable cost as total increases as level of activities decreases. B. fixed cost per unit and total variable costs increases as level of activities increases. C. variable cost per unit and total fixed cost remain constant as level of activities increases. D. fixed cost per unit remain constant and variable cost per unit decreases as level of activities decreases. W Pe
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