Cost-Capacity calculation technique takes into account a constant exponent to relate different costs to their respective capacities. a. False b. True The potential percent gain or loss in changes of variable is taken into account by: a. break-even analysis b. sensitivity analysis c. present worth analysis d. cost-benefit analysis

Q: What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs –…

A: Break-even point is the point at which there is no loss or no profit. It is because the sales…

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: CVP analysis is most important for the determination of [A] sales revenue necessary to equal fixed…

A: Cost: It refers to the economic value incurred by the company for producing a product or service.

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: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed…

A: Variable Cost change with level of activity Fixed Costs per unit changes when the level of activity…

Q: Which costs will change with a decrease in activity within the relevant range? Unit variable cost…

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

Q: Cost-volume-profit analysis favors either variable costing or absorption costs. Why?

A: The CVP analysis is used to analyse the impact of changes in variable cost and fixed cost on net…

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: Matching Following are a number of key terms and concepts introduced in thechapter, along with a…

A: Cost Accounting is a form of managerial accounting in which all the costs whether variable or fixed…

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

A: Average cost per unit only rewards the manager for removing tasks or materials from the process…

Q: The amount of increase or decrease in cost that is expected from a particular course of action as…

A: Discretionary cost: A discretionary expense is a cost that a business or household can survive…

Q: Show the effects oncontribution margin of changesin variable costs, fixed costs,selling price, and…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a.…

A: Variable cost: The cost which changes according to the level of activity. These are not fixed in…

Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…

A: Variable costs: These are the costs that proportionately change with the changes in the activity…

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: A decrease in production will result in an increase in Total Variable Cost True False

A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…

Q: Assume that only the specified parameters (that is, variables) change in a sensitivity analysis. The…

A:

Q: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…

A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…

Q: At the breakeven point Select one: O a. Sales will be equal to variable costs plus fixed costs b.…

A: Formula: Break even point in units = Fixed costs / contribution margin Contribution margin means…

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: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to 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: a. What problems are associated with using the average cost per unit as a performance measure? b.…

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

Q: The cost that vary accordingly to the volume of output is O a. Variable cost O b. Both fixed and…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

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: Variable costs change directly with the level of production. Select one: True False

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…

A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…

Q: Which one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…

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

Q: Relevant range is the activity that affects the increase or decrease of costs Select one: O True…

A: Lets first understand the meaning of relevant range. Relevant range is a range at which fixed cost…

Q: When the level of activity increases, total fixed costs a. decrease. b. remain the same. c.…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: a) Briefly discuss the similarities and differences between the terms 'overhead absorption rate' and…

A: “Since you have asked multiple question, we will solve the first question for you. If you…

Q: When using CVP Analysis, Net Profit (positive NI) would occur when Fixed Costs (FC) exceed total…

A: Net income as per CVP analysis -  sales - variable cost = contribution  contribution - fixed cost =…

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: A cost which remains constant per unit at various levels of activity is a Select one: a. mixed cost.…

A: Solution: A cost which remains constant per unit at various levels of activity is a "Variable cost".…

Q: following Fixed costs, variable costs, sales, breakeven point value, safety threshold ratio

A: Given in the question: Sales 8500 Raw Materials 2350 Insurance 275 Loan…

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: Profitability changes may be simply calculated by using what kind of tool: sales…

A: The net profits are calculated as difference between sales and total expenses.

Q: ich of the following pairs are correctly classified as variable costs and fixed costs, respectively?…

A: Variable costs are those cost which varies with an increase or decrease in sales. The fixed cost is…

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

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

Q: Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of…

A: The monetary value paid for the acquisition of something, or to run the operations of the…

Q: Explain why cost predictions based on the same cost driver can differ when applying the high-low…

A: The High-low method is a cost computation technique that separates variable and fixed cost from…

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.