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

Q: Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs…

A: CVP Chart:   Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable.…

A: Introduction:- Cost-volume-profit analysis is used to measures how changes in variable and fixed…

Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…

A: The different costs of production are classified as fixed costs and variable costs.  The fixed cost…

Q: a) What effect does an increase in volume on each of the following: 1) Unit fixed costs 2) Unit…

A: Fixed Cost In a simple term fixed cost which describe as cost which was incurred in the entity which…

Q: If the level of activity increases within the relevant range, which of the following will also…

A: Fixed costs are those costs which do not change as the volume of production increases or decreases.…

Q: Q2. Describe how total variable costs and unit variable costs behave with changes in the level of…

A: This is a theory question and we will explain Total variable cost and unit variable costs behave…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

Q: Fixed costs per unit _______. .1. can be estimated by the high-low method 2. remains the same when…

A: The high-low technique tries to distinguish between fixed and variable costs. The highest level of…

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: When the units manufactured increases, the most significant change in average unit cost will be…

A: When there is increase in the units manufactured, the non-variable cost will be apportioned to more…

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

Q: 1. Fixed cost per unit     Remains constant     Increases when output increases     Decreases…

A: Cost: It refers to the aggregated amount that is spent on manufacturing a product.

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: Fixed costs per unit increase proportionately with increases in volume of activity within the…

A:

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: How do total variable costs behave as production increases? (Definition of linear:…

A: There are two main types of costs – fixed costs and variable costs.   Fixed costs remains constant…

Q: Within the relevant range, A B D variable cost per unit increases as production decreases variable…

A: VARIABLE COST Variable cost are costs that changes as the Volume Changes.  Variable Cost is…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…

A: Total fixed cost remains same at all level of output.

Q: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…

A: Fixed cost is not affected by the changes in the level of activity.

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: Variable costs per unit are affected by an increase or decrease in activity. True or False True…

A: Variable Cost is that type of cost which is associated with the number of units produced or volume…

Q: Within the relevant range: a.        both total variable costs and total fixed costs will remain…

A: The costs incurred into the production are classified as fixed and variable costs. The variable…

Q: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…

A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…

Q: 4.A scatter graph is used to test the assumption that the relationship between cost and…

A: Explanation and answer is given below,

Q: 16 Which costs will change with a decrease in activity within the relevant range? Select one: a.…

A: The correct answer is a. Unit fixed cost and total variable costs.Explanation:Understanding how…

Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…

A: Option a is correct.

Q: Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and…

A: Variable costs is one of the one of the component of the total cost. Variable cost is the cost which…

Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…

A: Hi student SInce there are multiple questions, we will answer only first question. Since first…

Q: Optimal replacement interval is negatively correlated with which of the following? a. First cost b.…

A: Optimal replacement interval is negatively correlated with which of the following? Correct Answer-…

Q: A cost increases or decreases in intervals as activity changes.     a. historical cost b. step cost…

A: Introduction: Fixed costs: The costs which are fixed in nature , it won't varies according to the…

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.