Write “True” if the statement is true and write “False” if the statement is false A fixed cost is constant per unit of product. Cost accumulation, cost allocation, and cost objects are interrelated. A variable cost remains constant per unit, though in total increases as activity levels increase.

Write “True” if the statement is true and write “False” if the statement is false A fixed cost is constant per unit of product. Cost accumulation, cost allocation, and cost objects are interrelated. A variable cost remains constant per unit, though in total increases as activity levels increase.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...

See similar textbooks

Similar questions

Which of the following graphs best illustrates fixed costs per unit as the activity base changes?
ANSWER ALL THE GIVEN ITEMS. Write “True” if the statement is true and write “False” if the statement is false. 2. A variable cost will change in total in proportion to changes in the level of activity.3. A fixed cost is constant per unit of product.4. Cost accumulation, cost allocation, and cost objects are interrelated.5. A variable cost remains constant per unit, though in total increases as activity levels increase.6. If volume increases, both total variables and total fixed costs will increase.7. Decrease in the level of activity will cause total variable and total fixed costs to decrease.8. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.9. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange.10. Cost function is an express that mathematically links costs, their behavior, and their cost driver.11. As volume decreases within the relevant range, variable cost per unit…
Which 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.
If the level of activity increases within the relevant range, which of the following will also increase? Check all that apply. Check All That Apply Variable cost per unit. Fixed cost per unit. Total variable cost. Total fixed cost. Total cost.
PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange. Cost function is an express that mathematically links costs, their behavior, and their cost driver. As volume decreases within the relevant range, variable cost per unit remains the same andfixed cost per unit increases.
Which of the following statements regarding graphs of fixed and variable costs is true? (a) Variable costs can be represented by a straight line where costs are the same for each data point.(b) Fixed costs can be represented by a straight line starting at the origin and continuing through each data point.(c) Fixed costs are zero when production is equal to zero.(d) Variable costs are zero when production is equal to zero.(e) Fixed and Variable costs are curvilinear form above zero on the “Y” axis.
Variable 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.
Fixed cost per unit ______ A. Can be estimated by the high - low method. B. Remains the same when the level of activity changes. C. Are represented by the slope of the total cost line. D. All of the above answers are correct.
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.
Fixed costs per unit Can be estimated by the high-low method. Remains the same when the level of activity changes. Are represented by the slope of the total cost line. All of the above answers are correct.
The marginal cost is: Select one: O a. Is the incremental cost of an activity, such as producing a unit of goods or services O b. Is the cost that causes change in total cost for a cost object O c Is the span of activity levels for which the cost behaviour patterns hold O d. Is the input or activity that causes change in total cost for a cost object