Variable costs:
A.vary per unit of output as production levels change.
B. are fixed in total as production levels change.
C. decrease per unit as production volume increases.
D. are fixed per unit and vary in total as production levels change.
The correct option is :
D. are fixed per unit and vary in total as production levels change.
Total fixed costs and variable cost per unit do not change with change in units.Hence variable cost per unit is fixed while total variable costs increase with increase in production levels and vice-versa.
Variable costs: A.vary per unit of output as production levels change. B. are fixed in total as production levels change...
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.
Name Principles of Managerial Accounting Quiz 5-Chapter 6 1) Variable cos ts are described by which of the following statements? A) They are fixed in total. B) They vary per unit of output. C) Th D) They decrease per unit as production volume increases ey are fixed per unit and vary in total. total fixed costs, which of the following statements is true? 2) With respect to A) They will decrease as production decreases within the relevant range. B) They...
A firm's average total costs initially decrease because: A. at low levels of output, average fixed costs make up a large part of average total costs. B. at low levels of output, average variable costs make up a large part of average total costs. C. at low levels of output, average fixed costs make up a small part of average total costs D. the law of diminishing returns applies as output increases
What might happen BELOW the relevant range of production? a)Unit variable costs might decrease, as workers are highly experienced. b)Total fixed costs might decrease, as volume increases. c)Total fixed costs might increase, as volume increases. D)Unit variable costs might increase, as workers are not pressured to work efficiently.
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...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
20. If total fixed costs decrease by $5,000, selling price per unit increases by $2, and unit variable increases by $1, which of the following is true? Unit Contribution Break-Even Margin Volume Increase Increase Increase Decrease Decrease Increase Decrease Decrease E. Not enough information
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged and variable costs per unit increase B. fixed costs per unit increase and variable costs per unit remain unchanged C. fixed costs per unit remain unchanged and variable costs per unit decrease D. fixed costs per unit decrease and variable costs per unit remain unchanged E. fixed costs per unit decrease and variable costs per unit increase
1. Total costs may be computed as follows: a.(Fixed costs per unit × Unit volume) + Variable costs per unit b.Fixed costs per unit + (Variable costs per unit × Unit volume) c.Fixed costs + (Variable costs per unit × Unit volume) 2. A coefficient of determination of 0.91 means a.that the independent variable explains 91 percent of the cost. b.the model is significant 91 percent of the time. c.the two variables move together in the same direction and have...