In a flexible budget, what will happen to fixed costs as the activity level increases? A....
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.
Homework Answers
D. The fixed cost per unit will decrease.
Fixed cost per unit decreases when production volume increases. Total fixed costs remain the same, within the relevant range.
Answer D. The fixed cost per unit will decrease.
The total cost of fixed cost remains the same because fixed cost is fixed it will never change by increasing the unit. but when calculate fixed call per unit, we divide the fixed cost by no. of the unit. per unit fixed cost will decrease.
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In a flexible budget, what will happen to fixed costs as the
activity level increases?
A....
When using a flexible budget, what will happen to variable costs on a per-unit basis as...
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8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged...
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eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget b...
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When using a flexible budget, a decrease in activity within therelevant range:decreases variable costs...
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.
When a flexible budget is used, a decrease in the output level within the relevant range...
When a flexible budget is used, a decrease in the output level within the relevant range would: a. Not change fixed costs per unit. b. Decrease total fixed costs. c. Decrease total costs. d. Increase variable costs per unit.
atok Products, Inc., manufactures a chemical compound that goes through the processing stages prior to completion....
atok Products, Inc., manufactures a chemical compound that goes through the processing stages prior to completion. Information on work in the first department, Mixing, is given below for September 67,000 lbs. 200,000 lbs. Production data: Pounds in process, September 1: materials 80% complete; conversion 60% complete Pounds started into production during September Pounds completed and transferred out Pounds in process, September 31: materials 75% complete; conversion 25% complete Cost data: work-in-process inventory, September 1: Materials cost Conversion cost Cost added...
If the level of activity increases within the relevant range: A) variable costs per unit and...
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51. If the activity level increases, what happens to the total fixed cost? a. It decreases....
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Please explain the characteristics of a variable cost and fixed cost and as activity increases how...
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eted, total fixed costs should be higher than expected. If activity is lower than o included in a flexible budget because they do not change when the level of activity 10 Which of the following statements is true? A. If activity is higher than expected, total fixed cos expected, total fixed costs should be lower than expected B Fixed costs should not be included in a flexible bu changes. A revenue variance is favorable if the actual revenue is greater...
atok Products, Inc., manufactures a chemical compound that goes through the processing stages prior to completion. Information on work in the first department, Mixing, is given below for September 67,000 lbs. 200,000 lbs. Production data: Pounds in process, September 1: materials 80% complete; conversion 60% complete Pounds started into production during September Pounds completed and transferred out Pounds in process, September 31: materials 75% complete; conversion 25% complete Cost data: work-in-process inventory, September 1: Materials cost Conversion cost Cost added...
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