7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains...

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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

business accounting

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Answer 1

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Solution 7) b. Remains constant on a per unit basis

Reason : Variable cost is fixed per unit , in total it increases or decreases as it gets multiplied by the number of units.

Solution 8) a. Forecast cost and forecast activity

Reason : Predetermined overhead are based on estimation, these estimations are based upon forecasted costs and activity

Solution 9) c. Depreciation on a factory equipment

Reason : Depreciation on factory equipment is not dependant on product, moreover Deprereciation expenses are periodic costs

Solution 10) d. Least Sqaures

Reason : It is based upon calculation which predict a line on graph and is more accurate as compared to other methods

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