The total amount of fixed cost always remains the same but the fixed cost per unit changes with change in the level of activity. When activity increases, fixed cost per unit decrease and vice versa.
1st option
Fixed costs expressed on a per unit basis: o decrease with increases in activity. o increase...
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.
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged and variable costs per unit increase B. fixed costs per unit increase and variable costs per unit remain unchanged C. fixed costs per unit remain unchanged and variable costs per unit decrease D. fixed costs per unit decrease and variable costs per unit remain unchanged E. fixed costs per unit decrease and variable costs per unit increase
If the level of activity increases within the relevant range: O variable cost per unit and total cost also increase. O variable cost per unit and total fixed costs also increase. O fixed cost per unit and total variable cost also increase. O total cost will increase and fixed cost per unit will decrease.
20. If total fixed costs decrease by $5,000, selling price per unit increases by $2, and unit variable increases by $1, which of the following is true? Unit Contribution Break-Even Margin Volume Increase Increase Increase Decrease Decrease Increase Decrease Decrease E. Not enough information
In a flexible budget, what will happen to fixed costs as the activity level increases? A. The fixed cost per unit will remain unchanged. B. The fixed cost per unit will increase. C. Fixed costs are not included in a flexible budget. D. The fixed cost per unit will decrease. E. Total fixed cost will increase.
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.
Cost-volume-profit analysis assumes fixed costs: Remains constant on a per unit basis as activity changes. Remains constant from one period to the next. Increases in total as activity increases. Remains constant as activity changes. None of these.
An increase in the level of activity will have the following effects on unit costs for both variable and fixed costs: UNIT VARIABLE COSTS-UNIT FIXED COSTS Increase - decrease O Remains constant - remains constant Decrease - remains constant Remains constant - decrease
4.an increase in direct labor costs per unit a. Increases the fixed costs b. increases profits C. Increases variable costs d. Increases overhead costs 5.which of the following is true of the work in process control account? a. It tracks all direct material purchases b. Its balance is the sum of amounts from all "in process individual job costs records C. It is an expense account d. It tracks overhead costs in process from beginning through completion 6. The cost...
3. The contribution margin ratio increases when A) fixed costs increase. B) fixed costs decrease C) variable costs as a percentage of sales decrease. D) variable costs as a percentage of sales increase.