a. What problems are associated with using the average cost per unit as a performance measure? b. What problems are associated with using the variable cost per unit as a performance measure

Q: How does the variable cost per unit change as the level of activity (or cost driver) increases? Why?

A: A variable cost changes is directly proportional to the change in the level of activity or 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: R-squared is a measure of a. The spurious relationship between cost and activity D. The fxed cost…

A: R-Square measures that how much variation of a dependent variable is explained by a independent…

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: Cost classifications used for predicting cost behavior include: Multiple Choice Variable cost and…

A: Variable costs are the costs that varies with the change in output but per unit variable cost…

Q: Requirements a. What is the slope coefficient? b. What is the constant for the estimated cost…

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

Q: In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost…

A: Mixed cost also called the semi variable cost . Mixed cost contains both fixed and variable cost .…

Q: Explain the methods of segregating semi-variable costs into fixed and variable cost.

A: Variable cost is the cost which remains variable and fluctuate according to the level of production.…

Q: A total cost equation can be used to predict future costs for various activity levels. Write the…

A: Concept The total cost is the sum of variable cost and fixed cost incurred For example if variable…

Q: How do you find the variable cost per unit produced and sold ?

A: First step in computing the variable cost of unit produce and sold is to analyse the nature of…

Q: In the mixed cost function Y = A + BX, total variable costs is represented by: a. A + BX b. A c. Y…

A: In the mixed cost function Y = A + BX, Y = Total Cost A = Fixed Cost B = Variable Cost per unit X =…

Q: Show income comparison's of absorption and variable costing?

A: Absorption costing method can be defined as the all the costs that is associated with the production…

Q: what are the differences between the FIFO, LIFO, and the average cost?

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: ow do I prepare an income statement based on variable co

A: In managerial accounting, variable costing is a cost concept. During the creation of a product…

Q: In the standard cost formula Y = a + bX, what does the "Y" represent? total cost variable cost per…

A: Variable cost: Variable cost refers to that cost which gets increased with the increase in the…

Q: Explain average cost method.

A: Average cost method: Under average cost method inventories are priced at the average of all…

Q: What are the consequences of broad averaging on costs? Explain?

A: Broad Averaging:Broad averaging is also known as peanut butter cost is a costing approach of…

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: Which of the following are assumptions associated with the cost equation? Check all that apply. The…

A: Cost equation means a line or formula which shows both types of cost like fixed costs and variable…

Q: Which costing techniques are related to a predetermined cost as a performance targe and actual…

A: Solution: "Standard costing" are related to a predetermined cost as a performance target and actual…

Q: What is the difference between absorption-costing income and variable-costing income?

A: The income statement is prepared to record the revenues and expenses of the current period.

Q: Identifying the relationship between the activity and the costs is a key step in which of the…

A: Scattergraph is a method of visual representation of the relationship between the cost & the…

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: Explain this phrase, "Variable Overhead Efficiency Variance: It shows the effect of change in labour…

A: Variable Overhead Efficiency Variance: The difference between the actual time it takes to create a…

Q: What is the correlation between fixed, variable, and semi-variable costs??

A: Introduction:- Fixed Costs – Costs are same irrespective of the number of output produced Variable…

Q: When using the visual-fit method to estimate a cost function, we can estimate the fixed cost by O…

A: Visual Fit Method  It is the most common method used by analysts for examining the cost by the way…

Q: What is a relationship between fixed, variable and semi-variable cost?

A: Cost can be defined as the amount incurred upon the production of goods and services for the final…

Q: Explain variable costs, fi:xed costs, average variablecosts, average fixed costs, and average total…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: In applying the high-low method, what is the unit variable cost?

A: Formula: Variable cost per unit= Total cost of high actvity- Total cost of low actvityHighest…

Q: Which of the following is not a step st driver rate by the volume of cost w to reduce the costs of…

A: Explanation: Activity based costing is a costing  technique where production is split into different…

Q: “All the independent variables in a cost function estimated with regression analysis are cost…

A: Cost driver: Cost driver is one of the measurements that help the company in tracing directly the…

Q: Distinguish between ( a ) a variable cost, ( b ) a fixed cost, and ( c ) a mixed cost.

A: Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly…

Q: simple cost analysis method to identify fixed costs and variable costs in a linear cost function is…

A: High low method is method which separates the elements of fixed cost and variable cost from the…

Q: difference between absorption costing and variable costing

A: [Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: A factor that causes or leads to a change in a cost or activity is a(n) a. slope. b. intercept. c.…

A: (a) Costs are the expenditures that are incurred in the business for manufacturing or selling of…

Q: Hi,   How do you calculated variable production cost per unit?

A: Answer:Variable production cost per unit is calculated by dividing Total variable production costs…

Q: Which one of the following technique is mostly used for financial analysis and ?interpretation (Lä…

A: The mostly used technique for financial analysis is Ratio Analysis , which means it is method used…

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 describes the behavior of total variable and total fixed costs when level of…

A: Different costs associated with production process are - Fixed cost and variable cost. For example:…

Q: Explain the impact of an increase in the level of activity (or cost driver) on (a) total variable…

A: (a)

Q: Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether…

A: Hypothesis testing refers to the form of inferable statistics which allows us in making conclusions…

Q: h of the following is the format of the income statement that is MOST useful in decision-making?…

A: Solution: For the purpose of decision making, we need to have comparison of relevant revenues and…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?

A: First-In-First-Out (FIFO) Method:   It is a method of managing inventory of an organization. Under a…

Q: What happens to the total variable costs and the total fixed costs when the level of activity…

A: Formula: Total cost = Variable cost + Fixed cost Sum of both variable and fixed cost derives the…

Q: 1. What would the manufacturing cost per unit be under absorption costing? 2. What would the…

A: C Division of White Company 1 Calculation of manufacturing cost per unit using Absorption Costing:…

Q: Least-squares regression is a statistical method for identifying cost behavior. True or False True…

A: According to the given question, we are required to give the answer that the statement is true or…

Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…