Answered: A) B) (C) D) E) In Total Increase…

A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effect

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

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Question

As the level of activity increases, how will a mixed cost in total and per unit behave?
A)
B)
(C)
D)
E)
In Total
Increase
Increase
Increase
Decrease
Decrease
Multiple Choice
Choice A
Choice B
Choice C
Choice D
Per Unit
Decrease
Increase
No effect
Increase
No effect

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Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
The marginal cost is: Select one: O a. Is the incremental cost of an activity, such as producing a unit of goods or services O b. Is the cost that causes change in total cost for a cost object O c Is the span of activity levels for which the cost behaviour patterns hold O d. Is the input or activity that causes change in total cost for a cost object
Relevant range is the activity that affects the increase or decrease of costs Select one: O True O False Previo m Jump to... Return to: General +
In the mixed cost function Y A+ BX, total variable costs is represented by: O a. Y O b.A+ BX OG. BX O d. A
2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED COST C. MIXED COST D. STEP COST
As the level of activity increases, how will a mixed cost behave? a. Increase in total but would decrease per unit b. Increase in total and per unit c. Increase per unit but would increase in total d. None of these e. Decrease in total and per unit
In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept of the cost equation. total costs that do not vary with changes in the activity level. activity level used to estimate the dependent variable. slope of the cost equation.
What are the formulas for: 1. Contribution Cost 2. Break even cost
The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and variable cost C. Determining break even point D. All the 3 reasons listed
Y = a + bx which option describe this function? a. a- variable cost; b- level of activity , x- fixed cost b. None of the answers given c. a- variable cost; b- fixed cost, x- level of activity d. a- level of activity; b- variable cost , x- fixed cost
COSTING METHOD. 1. What is average cost method? 2. What is FIFO cost method?
Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and proportionately with changes in the activity level c. Both (a) and (b) above. d. remain the same per unit at every activity level