A variable cost is a cost thata. 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.

Q: Given below is a numbered list of cost terms. For the given definition statement. '_____ costs are…

A: '_____ costs are not repetitive even though the total expenditure may be cumulative over a…

Q: What is the effect of an increase in activity on the following items? a. Total variable costs b.…

A: a) An increase in activity would increase the total variable costs proportionately. Variable cost is…

Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is  a) Fixed costs Fixed cost…

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: The total variable costs charged to expense for the year, assuming that NUBD uses variable costing…

A: Introduction: Variable costs: The costs varies according to the change in output. It is not fixed in…

Q: A fixed cost is a cost which   Group of answer choices varies inversely in total with changes in…

A: Fixed cost is a cost that remains constant as volume of activity changes but per unit basis varies…

Q: 1. Separate the variable and fixed elements, using the high-low method. 2. Determine the variable…

A: The high low method is a method used derive the fixed cost and variable cost in a mixed cost the…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: Under the contribution income statement, a company’s contribution margin will be: Higher if fixed…

A: Contribution margin:

Q: True or false. economic order quantity occurs where the total cost total annual carrying equals the…

A: EOQ is economic order quantity which is optimal order quantity

Q: Compute the Revenue Effect- Growth Component, indicate if favorable/(unfavorable). *The activity…

A: Revenue refers to the amount received by the company from selling goods and services to the…

Q: If inventory increased during the year, income reported under absorption costing: will be higher…

A: Solution: If inventory increased during the year, income reported under absorption costing "will be…

Q: What is the effect of an increase in activity on total variable costs,variable cost per unit of…

A: Total cost refers to the cost or amount incurred by the company in production of its goods and…

Q: Can you please explain what we mean by "Short-run" and "long-run" for decision-making in cost…

A: The executive management team of a corporation uses cost accounting to determine all variable and…

Q: 1. The total variable costs charged to expense for the year, assuming that NUBD uses variable…

A: Solution:- 1)Calculation of total variable costs charged to expense for the year, assuming that NUBD…

Q: Compute the net income for each month using variable costing.

A: The variable costing income statement: It is one where all variable expenses are deducted from…

Q: A manufacturing company prepares income statements using both absorption and variable costing…

A: The net income is contributed as difference between gross profit and selling expenses or difference…

Q: Riders Company computes net operating income under both the absorption costing approach and the…

A: Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Q: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…

A: Fixed cost is not affected by the changes in the level of activity.

Q: b) Discuss two advantages and two disadvantages of a standard costing system in which the standard…

A: Standard Costing:   Standard costing is an accounting tool which is used to measure the variances…

Q: Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output…

A: There are two cost fixed cost and variable cost. Cost per unit depends on fixed and variable costs…

Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…

A: Contribution margin: Contribution margin is the excess of selling price over the variable costs of a…

Q: rovide income statements in both variable costing and absorption costing formats for an initial…

A: 1. Income statement under Absorption Costing : Under Absorption costing all variable cost and…

Q: Which of the following statements is true? a. Both variable and fixed cost change with the change in…

A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…

Q: QUESTION: If variable costing is in use, one would expect: a. net operating income to be erratic…

A:

Q: A fixed cost total rises or falls in approximate proportion to changes in activity base. Select one:…

A: The costs incurred can be defined as fixed Cost and variable cost

Q: A cost which changes in proportion to changes in volume of activity is called a: *       a. fixed…

A: Costs are the expenses or amounts incurred in the business for manufacturing or selling of products.…

Q: Operating income reported under full costing will exceed operating income reported under variable…

A: The correct option is b. (Production exceeds sales for that period).

Q: Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and…

A: Variable costs is one of the one of the component of the total cost. Variable cost is the cost which…

Q: A. Prepare a variable costing income statement showing the contribution margin and income from…

A: Variable costing:   Variable costing is the method that is used by the management (managers) for…

Q: A variable cost is a cost that varies per unit at every level of activity. occurs at various times…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: PROBLEM III, Silva Corporation uses an absorption costing system for internal reporting purposes, At…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: First: When the number of units in inventories decrease between the beginning and end of the period,…

A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…

Q: EOQ focuses on the trade-off between A) carrying costs and delivery costs B) seasonality and steady…

A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…

Q: Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit…

A: Variable costs: These are the costs that vary depending on the volume of the activity. Fixed costs:…

Q: Which of the following describes the behavior of the variable cost per unit?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: Which of the following best describes a fixed cost?   A. It may only change in total when such…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Fixed costs are costs that: Select one: a. Neither of the above b. remain the same per unit at every…

A: Fixed Cost Correct Answer = Option B = Remain the same per unit at every activity level Variable…

Q: Variable costs are costs that: Select one: a. Both (a) and (b) above. b. vary in total directly and…

A: The costs incurred in production can be classified as variable cost, fixed cost and mixed cost.

Q: Required: 1. Determine the total variable costs and the total fixed costs for the current year.…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: The high-low method: a. Calculates variable costs per unit by dividing the difference in the high…

A: The high-low method is a method to separate or segregate the fixed and variable cost portions of a…

Q: Discuss two advantages and two disadvantages of a standard costing system in which the standard…

A: Standard costing refers to a process of setting cost for labor rates, direct material, and other…

Q: Which of the following statements describes variable costs?A. Costs that vary on a per-unit basis as…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: A fixed cost remains constant in total and on a per unit basis at various levels of activity. Ture O…

A: Following is the answer to the given question

Q: Over extended periods of time, the net income figures reported under absorption costing will be: a.…

A: Under absorption costing, unit cost is calculated on the basis of total cost including fixed and…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.