Variable costs are the costs remain constant in 'total" amount over a wide range of activity for a specified period of time; i.e., these do not increase or decrease when the volume of production changes. Select one: O True O False
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: When unit sales are constant, but the number of units produced fluctuates and everything else…
A: Solution:- B) remain constant.
Q: What is the effect of an increase in activity on the following items? a. Total variable costs b.…
A: a) An increase in activity would increase the total variable costs proportionately. Variable cost is…
Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…
A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…
Q: Which costs will change with a decrease in activity within the relevant range? Unit variable cost…
A: Cost can be classified into two categories i.e fixed cost and variable cost. The fixed cost remains…
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: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…
A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…
Q: Fixed costs per unit increase proportionately with increases in volume of activity within the…
A:
Q: Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a.…
A: Variable cost: The cost which changes according to the level of activity. These are not fixed in…
Q: What is the effect of an increase in activity on total variable costs,variable cost per unit of…
A: Total cost refers to the cost or amount incurred by the company in production of its goods and…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…
Q: Within the relevant range of activity, variable cost per unit will: O a increase in proportion with…
A: There are two type of main costs in the business. These are fixed costs and variable costs.
Q: A variable cost is a cost thata. varies per unit at every level of activity.b. occurs at various…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: How does this change in the variable cost per unit affect the break-even chart?
A: Break even point the minimum selling target, an organisation needs to achieve in order to recover…
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: 1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately…
A: Answer 1. As activity increases, unit variable cost increases proportionately with activity.
Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…
A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…
Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: A cost which changes in proportion to changes in volume of activity is called a: * a. fixed…
A: Costs are the expenses or amounts incurred in the business for manufacturing or selling of products.…
Q: Which one of the following statements about fixed costs is correct? -The average fixed cost per…
A: Fixed cost is the cost that remains constant irrespective of the level of production. A company…
Q: Variable costs are expenses that ________. a.remain constant on a per-unit basis but change in…
A: Variable costs as the name suggests are those costs which are variable in nature or these costs will…
Q: The cost that vary accordingly to the volume of output is O a. Variable cost O b. Both fixed and…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…
A: Option a is correct.
Q: In the long run, the long-run average cost curve _____, whereas in the very long run, the long-run…
A: a. none of the above
Q: When the level of activity increases, total fixed costs a. decrease. b. remain the same. c.…
A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…
Q: Variable costs are costs that: a) Vary inversely proportional with changes in activity b) Remain…
A: Total variable costs increase with the increase in activity and decrease with the decrease in…
Q: PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is…
A: Variable costs are those costs that changes with change in level of activity. Fixed costs are costs…
Q: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…
A: Variable costs: Variable costs are those costs that change in proportion to change in the production…
Q: Fixed cost are conventionally deemed to be: Select one: a. Those unaffected by inflation b. Constant…
A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…
Q: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As…
A:
Q: Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit…
A: Variable costs: These are the costs that vary depending on the volume of the activity. Fixed costs:…
Q: Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain…
A: Variable cost : Variable costs are constant per unit and change in total while fixed costs always…
Q: A cost which remains constant per unit at various levels of activity is a Select one: a. mixed cost.…
A: Solution: A cost which remains constant per unit at various levels of activity is a "Variable cost".…
Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…
A: The total cost of a product can be variable or fixed cost.
Q: Variable costs vary in total as activity varies. vary on a per unit basis as activity varies. O are…
A: Total costs are comprised of two costs: (i) Fixed costs and (ii) Variable costs. Fixed costs are…
Q: If a firm changes its activity level * all costs should change variable costs should change…
A: The answers for the multiple choice questions and relevant explanation are presented hereunder :…
Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: The high-low method: a. Calculates variable costs per unit by dividing the difference in the high…
A: The high-low method is a method to separate or segregate the fixed and variable cost portions of a…
Q: Which of the following defines variable cost behavior? a. Total cost reaction to increase in…
A: The variable cost is the cost that affects in the direct proportion to the units of activity in…
Q: Which of the following describes the behavior of the fixed cost per unit? Decreases…
A: Fixed cost is the cost that remains constant irrespective of the level of production. Whereas…
Q: Which of the following statements describes variable costs?A. Costs that vary on a per-unit basis as…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of…
A: The monetary value paid for the acquisition of something, or to run the operations of the…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable…
A:
Q: A fixed cost remains constant in total and on a per unit basis at various levels of activity. Ture O…
A: Following is the answer to the given question
Q: Variable costs are costs that: vary inversely proportional with changes in activity Remain constant…
A: Variable cost refers to the cost that varies in total amount with the changes units produced by the…
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- When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unitWhen variable costs increase and all other variables remain unchanged, the break-even point will ____________________. A. remain unchanged B. increase C. decrease D. produce a lower contribution marginWhen fixed costs decrease and all other variables remain unchanged, the break-even point will _______________. A. remain unchanged B. increase C. decrease D. produce a lower contribution margin
- Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O b. FALSEVariable costs are costs that: A.vary inversely proportional with changes in activity B.Remain constant as activity changes C.Decrease on a per unit basis as activity increases D.Remain constant on a per unit basis as activity changesWhich of the following cost behavior assumptions is true? (You may select morethan one answer.)a. Variable costs are constant if expressed on a per unit basis.b. Total variable costs increase as the level of activity increases.c. The average fixed cost per unit increases as the level of activity increases.d. Total fixed costs decrease as the level of activity decreases
- Which of the following statements is TRUE? O A. Variable costs per unit decrease as production levels increase. O B. Fixed costs per unit decrease as production levels increase. OC. Total indirect costs are always greater than total direct costs. O D. Direct costs are usually overheads.Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.They will decrease as production decreases. B.They will increase as production increases. C.They will increase as production decreases. D.They will remain the same as production levels change.Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.
- What is characteristic of variable costs within the relevant range? A. Decrease in total as as output increases B. Stay constant in total as output increases C. Decrease on a per-unit basis as output increases D. Stay constant on a per-unit basis as output changesVariable costs are costs that O a) vary in total directly and proportionately with changes in the activity level. b) remain the same per unit at every activity level. c) neither of the above. O d) both (a) and (b) above.When the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.