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.
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: When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin per unit : The contribution margin is defined as the amount of which the sales…
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: . What is the difference between variable and fixed costs? Also explain how the total variable cost…
A: " Since you have posted more than two questions and not specified which should be solved so we are…
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: Which of the following is true about the changes in fixed cost? An increase in production will…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: Which of the following statements is true about fixed and variable costs? * Both costs are constant…
A: Solution:- When sales units are increases or decreases the total sales also increase or decreases…
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: Which of the following describes the behavior of the fixed cost per unit?
A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…
Q: Select the correct statement regarding fixed costs. A) Because they do not change, fixed costs…
A: Fixed costs are the costs that remain constant irrespective of the volume of production.
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: 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: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…
A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…
Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…
A: Variable costs: These are the costs that proportionately change with the changes in the activity…
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: When variable costs increase and all other variables remain unchanged, the break-even point will…
A: The break even point is incurred when all the costs are covered by the sales and there is no profit…
Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…
A: Fixed cost will change and total cost will remain the same.
Q: 5. Which of the following statements is correct? A. total fixed cost remain constant while variable…
A: Solution:- The following statement is true as follows under:-
Q: Which of the following statements regarding graphs of fixed and variable costs is true? (a)…
A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…
Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…
A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…
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: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…
A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…
Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
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: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…
A: Fixed costs are those costs which do not change with change in level of activity. For example,…
Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…
A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: Contribution margin is the difference of sales price per unit and variable cost per unit.
Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…
A: Option a is correct.
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…
A: Fixed cost in total remains constant. They will not change by change in production.
Q: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…
Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…
A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…
Q: Which one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: When the level of output increases within the relevant range, _____. a.fixed cost per unit does…
A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…
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: Show how each of these costs will behave as the volume of activity decreases.…
A: The volume of activity directly impacts the variable cost because the variable cost changes directly…
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: What happens to the total variable costs and the total fixed costs when the level of activity…
A: Formula: Total cost = Variable cost + Fixed cost Sum of both variable and fixed cost derives the…
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: 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: Variable costs are the costs remain constant in 'total" amount over a wide range of activity for a…
A: Cost refers to the amount spend on the production of goods or services. This is the amount seller…
Q: In the fixed cost per unit does the it increase as activity decreases and will decrease as activity…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Which of the following do not increase or decrease when the volume of production changes? O a. Fixed…
A: Some cost do not get affected by the volume of production. It remains same at all the levels of…
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…
Step by step
Solved in 2 steps
- 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.(a) Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit variable cost remain constant regardless of the level of activity a. Both statements are true b. Both statements are false c. Statement A is true and statement B is false d. Statement A is false and statement B is trueWhich 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
- Within the relevant range:a. both total variable costs and total fixed costs will remain constant.b. both total variable costs and total fixed costs fluctuate.c. fixed costs per unit will remain constant and variable costs per unit will fluctuate.d. variable costs per unit will remain constant and fixed costs per unit will fluctuate.The increase/decrease in variable cost from existing level to the new level is called as __cost. a.Standard b.Marginal c.Fixed d.Opportunity1.) Explain the effects of an increase in the volume of activity on the following costs. (Assume volume remains within the relevant range .) a. Total variable costs. b. Variable cost per unit. Total fixed cpst . d. Fixed cost per unit. e. Total semi variable costs. f. Semi variable cost per unit .
- Show 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 sameWhen 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.PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. If volume increases, both total variables and total fixed costs will increase. Decrease in the level of activity will cause total variable and total fixed costs to decrease. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.
- Which of the following best describes a variable cost? A cost that: a. Represents a fixed proportion of total costs b. Has a direct relationship with outputc. Is sometimes also known as an indirect cos d. Falls on average, as output increases.Within the relevant range: Select one: O A. variable cost per unit decreases as production decreases. O B. fixed cost per unit increases as production decreases. O C. fixed cost per unit decreases as production decreases. O D. variable cost per unit increases as production decreases.Variable 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 changes