Correct Answer: Decrease
Explanation:-
total Variable Cost will be increase as activity level will be increase but unit variable cost will remain same irrespective of increase in Unit . However , total fixed cost remain same , irrespective of increase in acctivity level but due to increase in activity level , per unit fixed cost per decreased .
Finally average cost per product will be decreased due to increase in activity level.
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In the production of a product that has variable and fixed costs when the activity level...
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?...
When the level of activity increases within the relevant range, how does each of the following change? A. Variable Cost per Unit - Increases, Fixed Cost per Unit - Increases B. Variable Cost per Unit - Decreases, Fixed Cost per Unit - Remains the same C. Variable Cost per Unit - Remains the same, Fixed Cost per Unit - Decreases D. Variable Cost per Unit - Remains the same, Fixed Cost per Unit - Increases The new cost analyst in your...
When using a flexible budget, a decrease in activity within the relevant range:decreases variable costs per unit.decreases total costs.increases total fixed costs.increases variable cost per unit.
If activity level decreases, what happens to the total variable cost? It increases. It decreases. It remains the same. It depends on how much the activity level increases.
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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QUESTION 1 If fixed costs are $45,000 and the total costs are $60,000 at an activity level of 6,000 units, variable costs are: $10.00 per unit $7.50 per unit $5.00 per unit $2.50 per unit QUESTION 2 The contribution margin is equal to: Revenues - fixed costs Revenues - variable costs Fixed costs + Variable costs Fixed costs - Variable costs QUESTION 3 When other factors remain constant, an increase in variable costs: Increases the number of units needed to...
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 12 As production increases, the fixed cost per unit increases O decreases remains the same either increases or decreases, depending on the variable costs
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....