Which of the following statements is true? a. Both variable and fixed cost change with the change in the level of production b. Variable cost per unit and fixed cost per unit remain constant through the levels of production. c. Total variable cost and total fixed cost does not change with change in the level of production. d. Variable cost per unit remains constant and fixed cost per unit decreases with the increase in level of production.
Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…
A: Contribution margin = Sales price per unit - Variable cost per unit Therefore, there is no impact…
Q: Which of the following is NOT true of variable costing? a. Profits may increase though sales…
A: Variable costing is a concept used in managerial and cost accounting in which the fixed…
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: Which one of the following is not considered an assumption of cost-volume-profit analysis? a.…
A:
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 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: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…
A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost
Q: Which of the following statements is NOT true about costs per unit within the relevant range?…
A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…
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: 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: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…
A: Variable cost ratio = Variable cost per unit / Selling price per unit
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: On the cost- volume -profit graph , the area between the total cost line and the sales line before…
A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…
Q: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…
A:
Q: Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output…
A: There are two cost fixed cost and variable cost. Cost per unit depends on fixed and variable costs…
Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…
A: Variable cost is the cost incurred during the production of units which will be directly…
Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…
A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…
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: 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: 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: 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: Which one of the following is not an assumption of CVP analysis? The behavior of costs and…
A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…
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: Which of the following is true of a variable cost? Total variable cost remains constant with…
A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…
Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…
A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…
Q: When volume of production decreases fixed cost per unit will
A: We know: Fixed Cost remains constant at all levels of production. Fixed cost per unit = 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: Within the relevant range, the change in activity level will result in a. A change in both of…
A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…
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: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…
A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…
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: When using a variable costing system, the contribution margin discloses the excess of Revenues over…
A: Contribution margin = Total revenue - Total variable cost
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: Which of the following describes the behavior of the variable cost per unit?
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
Q: Which of the following best describes a fixed cost? A. It may only change in total when such…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…
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 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: All else being equal , what happens to the unit contribution margin and the contribution margin…
A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…
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: 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: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Option b is correct.
Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…
A: Break even point can be referred to as a sales level at which the firm is just able to recover all…
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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 should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable costWhich of the following describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing production
- 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.When the level of output increases within the relevant range, _____. a.fixed cost per unit does not change, but the variable cost per unit decreases b.both fixed cost per unit and variable cost per unit do not change c.both fixed cost per unit and variable cost per unit decrease d.fixed cost per unit decreases, but the variable cost per unit does not changeWhich 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 changesWhich 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.
- Which of the following is true of a variable cost? Total variable cost remains constant with changes in the number of goods sold. Unit variable cost decreases with an increase in production. Unit variable cost remains constant with changes in production. Total variable cost decreases with an increase in the number of goods sold.Which of the following statements is true regarding average fixed costs? Select one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed costs per unit cannot be determined. c. Average fixed costs per unit remain fixed regardless of level of activity. d. Average fixed costs per unit rise as the level of activity rises.What is happening to average costs when marginal cost is greater than average cost at a specific production level? A. Average cost is decreasing B. Average cost and marginal cost are equal C. Average cost is increasing D. Average cost is not changing A