Question 11:
Answer: c. Fixed cost
b.The fixed cost decreases when volume increases
Explanation:
Volume | Cost per unit | Total |
500 | $ 6 | $ 3,000 |
1000 | $ 3 | $ 3,000 |
1500 | $ 2 | $ 3,000 |
The overall fixed cost remains constant where as fixed cost per unit is inversely proportional to the volume
Question 11: The following table represents cost and volume information for Company B: Volume Cost per...
Question 10 The following table represents cost and volume information for Company A: Volume (in units) 200 Cost per unit (in %) $10 400 10 600 10 The above data represent a Select one: O a. Variable cost O b. Mixed cost O c. Fixed Cost O d. None of these Next page
Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of the following kinds of information would she be interested in? Select the correct statement regarding fixed costs Multiple Choice Because they do not change, fixed costs should be ignored in decision making The fried cost per unit increases when volume increases The fixed cost per unit decreases when volume increases The fixed cost per unit does not change when volume decreases
Answer these questions below 1. This costs changes in total with each level of volume or activity A. Fixed B. Variable C. Mixed D. None of these 2. In total this cost remains constant despite changes in activity or sales volumes A. Fixed B. Variable C. Mixed D. None of these 3. On a per unit basis this cost remain constant A. Fixed B. Variable C. Mixed D. None of these 4. On per unit basis this cost increases with...
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Question 1a, 1b, 1c, 1d
Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 138,000 Direct materials cost 87,000 Equipment depreciation (straight-line) 22,000 Factory insurance 16,000 Factory manager's salary 10,800 Janitor's salary 5,000 Packaging costs 19,600 Property taxes 16.000 From the above information, calculate Closet Link's total variable costs. O A. $244,600 O B. $314,400 O C. $69,800 O D. $225,000 Question Help Which of the following is not an assumption...
3 As the volume of activity increases within the relevant range, the variable cost per unit a. decreases. b. decreases at first, then increases. c. remains the same. d. increases.
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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...
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uestIO At current sales volume of 100 units, fixed costs (FC) are $5 per unit and variable costs (VC) are $10 per unit a) Compute total fixed costs at current sales volume. total FC- b) Suppose that sales volume increases to 125 units. At this new volume, total FC FC per unit - VC per unit total VC- c) Write down the total cost equation: TC- (e.g., if TC 500+2*volume, enter 500 in the first box and 2 in the...