11) True or False: As activity decreases within the relevant range, fixed costs remain constant on...
11) True or False: As activity decreases within the relevant range, fixed costs remain constant on a per unit basis.
13) True or False: Within the relevant range, a change in activity results in a change in variable cost per unit and total fixed cost.
Homework Answers
Fixed Cost: Fixed Cost remains same within a certain range of activity. As the level of activity reduces, the fixed cost PU increases because of Denominator decrease.
So the given statement is False
Variable Cost PU remains same at any activity level and decrease/increase at total level and fixed cost remains same at total level but decrease/increase with change in activity level
So the given statement is false
Add Answer to:
11) True or False: As activity decreases within the relevant
range, fixed costs remain constant on...
Within the relevant range, a change in activity results in a change in variable cost per...
Within the relevant range, a change in activity results in a change in variable cost per unit and total fixed cost. True or False
Which of the following statements regarding fixed costs is incorrect? Total fixed costs are constant within...
Which of the following statements regarding fixed costs is incorrect? Total fixed costs are constant within the relevant range. Fixed costs expressed on a per unit basis will decrease with increases in activity. Fixed costs expressed on a per unit basis will increase with decreases in activity. Expressing fixed costs on a per unit basis usually is the best approach for decision making.
1. Total fixed costs change as the level of activity changes. true or false? 2. Variable...
1. Total fixed costs change as the level of activity changes. true or false? 2. Variable costs are costs that remain constant on a per-unit basis as the level of activity changes. true or false? 3. Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio. true or false 4. The data required for determining the break-even point for a business are the total estimated fixed costs for a period stated as a percentage...
25) Variable costs vary in total and vary per unit (within the relevant range). True False...
25) Variable costs vary in total and vary per unit (within the relevant range). True False 26) On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the line representing total costs (variable costs and fixed costs). True False 28. Depreciation expense on an office copier used by the CEO in the administrative building is a product cost and a noncash expense. True False 29. One disadvantage of top down budgeting is budgetary...
If the level of activity increases within the relevant range: A) variable costs per unit and...
If the level of activity increases within the relevant range: A) variable costs per unit and total fixed costs stay the same. B) fixed cost per unit and total variable cost also increase. C) variable cost per unit and total cost also increase. D) total cost will increase and fixed cost per unit will stay the same.
Question 1 Fixed cost per unit continuously declines as production increases (within the relevant range). This...
Question 1 Fixed cost per unit continuously declines as production increases (within the relevant range). This is called economies of scale. True False Question 2 The coefficient of determination or R squared, in regression analysis, should be less than 0.75 to indicate a strong cost equation. True False Question 3 ABC Co. has fixed costs of $85,000. ABC wants to achieve an after-tax profit of $10,000. The selling price per unit is $100, and the variable cost per unit is...
Determine the relevant range of activity for this product. Calculate the variable costs per unit within...
Determine the relevant range of activity for this product.
Calculate the variable costs per unit within the relevant
range.
Indicate the fixed cost within the relevant range.
Determine the relevant range of activity for this product The relevant range of activity for this product units LINK TO TEXT Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places, e.g. 1.25.) Variable costs per unit per unit LINK TO TEXT Indicate the fixed cost within...
2. Total fixed costs regardless of changes in activity level (within a relevant range) Fixed costs...
2. Total fixed costs regardless of changes in activity level (within a relevant range) Fixed costs per unit in proportion to changes in activity level.
Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its...
Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct? I. As the cost driver level increases, total fixed cost remains unchanged. II. As the cost driver level increases, unit fixed cost increases. III. As the cost driver level decreases, unit variable cost decreases. 1. I, II, and III are correct. 2. I and II only are correct. 3....
Fixed Factory and Variable Factory Overhead Cost : A. True or False / Fixed factory overhead changes...
Fixed Factory and Variable Factory Overhead Cost : A. True or False / Fixed factory overhead changes in total over the relevant range, based on production. B.True or False / Fixed factory overhead per unit does not change over the relevant range. C. True or False / Variable factory overhead does change in total over the relevant range. D. True or False / Activity based costing is used to allocate overhead cost pools based on single basis such as direct labor hours or machine...
Determine the relevant range of activity for this product.
Calculate the variable costs per unit within the relevant
range.
Indicate the fixed cost within the relevant range.
Determine the relevant range of activity for this product The relevant range of activity for this product units LINK TO TEXT Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places, e.g. 1.25.) Variable costs per unit per unit LINK TO TEXT Indicate the fixed cost within...
2. Total fixed costs regardless of changes in activity level (within a relevant range) Fixed costs per unit in proportion to changes in activity level.
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