Homework Answers
Fixed costs do not change with increase or decrease in the level of production. Total fixed costs will remain the same, within the relevant range. However, the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units,
Thus the answer is b) decreases
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Question 12 As production increases, the fixed cost per unit increases O decreases remains the same...
Within the relevant range: O 1. variable cost per unit decreases as production decreases O 2....
Within the relevant range: O 1. variable cost per unit decreases as production decreases O 2. fixed cost per unit decreases as production increases. 3. fixed cost per unit decreases as production decreases. O 4. variable cost per unit increases as production decreases QUESTION 32 Jones Company had the following inventory balances for the month of April: Ap Apr 30 Raw Materials $15,000 $5,000 Work In Process $10,000 $11,000 Finished Goods $25,000 $20,000 If the company transferred $40,000 of completed...
Within the relevant range: O 1. variable cost per unit decreases as production decreases O 2....
Within the relevant range: O 1. variable cost per unit decreases as production decreases O 2. fixed cost per unit decreases as production increases. 3. fixed cost per unit decreases as production decreases. O 4. variable cost per unit increases as production decreases QUESTION 32 Jones Company had the following inventory balances for the month of April: Ap Apr 30 Raw Materials $15,000 $5,000 Work In Process $10,000 $11,000 Finished Goods $25,000 $20,000 If the company transferred $40,000 of completed...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
MULTIPLE-CHOIC 4-1 If the variable cost per unit goes Break-even point increases. decreases. decreases. increases remains...
MULTIPLE-CHOIC 4-1 If the variable cost per unit goes Break-even point increases. decreases. decreases. increases remains unchanged Contribution margin a. increases b. increases c. decreases d. decreases e. decreases 4.2 The amount of revenue required to earn a targeted profit is equal to total fixed cost divided by contribution margin. a. total fixed cost divided by the contribution margin ratio. targeted profit divided by the contribution margin ratio. d. total fixed cost plus targeted profit divided by contribution margin ratio....
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
51. If the activity level increases, what happens to the total fixed cost? a. It decreases....
51. If the activity level increases, what happens to the total fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends on how much the activity level increases. 52. If the activity level increases, what happens to the unit fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends on how much the activity level increases. 53. If activity level increases, what happens to the unit variable cost?...
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...
1) How do variable costs per unit behave? A. They increase as production decreases. B. They...
1) How do variable costs per unit behave? A. They increase as production decreases. B. They remain the same throughout production levels within the relevant range. C. They decrease as production increases. D. They decrease as production decreases. 2) How do fixed costs per unit behave? A. They decrease as production decreases. B. They increase as production decreases. C. They remain the same throughout production levels within the relevant range. D. They increase as production increases.
When the variable cost per unit (v) increases but the fixed cost (FC) and the revenue...
When the variable cost per unit (v) increases but the fixed cost (FC) and the revenue per unit (r) remain constant, then: Question 17 options: The break-even point moves to the left. The break-even point stays in the same place. The break-even quantity increases. The break-even quantity decreases.
Within the relevant range: O 1. variable cost per unit decreases as production decreases O 2. fixed cost per unit decreases as production increases. 3. fixed cost per unit decreases as production decreases. O 4. variable cost per unit increases as production decreases QUESTION 32 Jones Company had the following inventory balances for the month of April: Ap Apr 30 Raw Materials $15,000 $5,000 Work In Process $10,000 $11,000 Finished Goods $25,000 $20,000 If the company transferred $40,000 of completed...
Within the relevant range: O 1. variable cost per unit decreases as production decreases O 2. fixed cost per unit decreases as production increases. 3. fixed cost per unit decreases as production decreases. O 4. variable cost per unit increases as production decreases QUESTION 32 Jones Company had the following inventory balances for the month of April: Ap Apr 30 Raw Materials $15,000 $5,000 Work In Process $10,000 $11,000 Finished Goods $25,000 $20,000 If the company transferred $40,000 of completed...
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
MULTIPLE-CHOIC 4-1 If the variable cost per unit goes Break-even point increases. decreases. decreases. increases remains unchanged Contribution margin a. increases b. increases c. decreases d. decreases e. decreases 4.2 The amount of revenue required to earn a targeted profit is equal to total fixed cost divided by contribution margin. a. total fixed cost divided by the contribution margin ratio. targeted profit divided by the contribution margin ratio. d. total fixed cost plus targeted profit divided by contribution margin ratio....
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
51. If the activity level increases, what happens to the total fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends on how much the activity level increases. 52. If the activity level increases, what happens to the unit fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends on how much the activity level increases. 53. If activity level increases, what happens to the unit variable cost?...
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