Variable costs per unit remains same regardless of changes in activity level. Total Variable cost increases or decreases with changes in activity level. |
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regardless of changes in activity level Variable costs per unit 1. with changes in activity level...
2. Total fixed costs regardless of changes in activity level (within a relevant range) Fixed costs per unit in proportion to changes in activity level.
1. Describe how total variable costs and unit variable costs behave with changes in the level of activity. 2. How would each of the following costs be classified if units produced is the activity based? a. Direct material costs b. Direct labor costs c. Electricity costs of $0.35 per kilowatt-hour.
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.
1. Total fixed costs change as the level of activity changes. true or false? 2. Variable costs are costs that remain constant on a per-unit basis as the level of activity changes. true or false? 3. Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio. true or false 4. The data required for determining the break-even point for a business are the total estimated fixed costs for a period stated as a percentage...
O Variable costs per unit remain the same regardless of the volume. Question 7 2.5 pts Which of the following costs are most likely to be classified as variable? Factory rent Manager salaries Insurance Direct materials Straight-line depreciation 2.5 pts Question 8 Which of the following costs are most likely to be classified as fixed? Differential cost Question 6 2.5 pts Which one of the following statements is not true? Total fixed costs remain the same regardless of volume within...
1.A variable cost is a cost that A) varies per unit at every level of activity. B) occurs at various times during the year. C) varies in total in proportion to changes in the level of activity D) may or may not be incurred, depending on management's discretion. 2. The amount by which actual or expected sales exceeds break-even sales is referred to as A) contribution margin. B) unanticipated profit. C margin of safety. D) target net income.
If the level of activity increases within the relevant range: O variable cost per unit and total cost also increase. O variable cost per unit and total fixed costs also increase. O fixed cost per unit and total variable cost also increase. O total cost will increase and fixed cost per unit will decrease.
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...
1. Mateo Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity. Note: you need to calculate a total cost Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for Mateo Company: a) Variable cost per unit. (2 marks) b) Total fixed cost per period. (2 marks) c) Total expected costs at the 18,000-unit level of activity....
As the level of activity increases, how will a variable cost in total and per unit behave? A) In Total Increase Increase Increase Decrease Decrease Per Unit Decrease Increase No effect Increase No effect Multiple Choice Choice A Choice B