MI6's average cost per unit is the same at all level of volume. Which of the following is true? a. Mi6 must have only variable costs D. Mi6 must have only fixed costs C. Mi6 must have some fixed costs and some variable costs d. Mi6's cost structure cannot be determined from this information
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- Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct? I. As the cost driver level increases, total fixed cost remains unchanged. II. As the cost driver level increases, unit fixed cost increases. III. As the cost driver level decreases, unit variable cost decreases. 1. I, II, and III are correct. 2. I and II only are correct. 3. I only is correct. 4. II and III only are correct.TYU is choosing between two alternative processes. Process A has a fixed costs of P150,000 and a variable cost of P15 per unit while Process B has a fixed costs of P300,000 and a variable cost of P10 per unit. What is the level of production in units that would make TYU to be indifferent between the two processes?If the units produced and unit sales are equal, which method would you expect to show the highernet operating income, variable costing or absorption costing? Why?
- Describe how the scattergraph method breaks out the fixed and variable costs from a mixed cost. Now describe how the high-low method works. How do the two methods differ?Please explain thoroughly the statement below. (True/false), how and why? "When expressed on a per-unit basis, fixed costs can mislead decision-makers into thinking of them as variable costs." Here is my explanation on the statement above (is it true?): Because the fixed cost per unit varies and variable cost per unit is constant. Therefore, users can think of the fixed cost as a variable cost.Which of the following statements is true for a firm that uses variable costing? A. The cost of a unit of product changes because of changes in number of units manufactured.B. Profits fluctuate with sales.C. An idle facility variation is calculated.D. Product costs include variable administrative costs.
- Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs change as the production amount changes. b. Total costs are the sum of total fixed and variable costs. c. Total variable costs increase due to a rise in production level. d. Variable costs per unit tend to be constant with respect to number of units produced.1. What is the difference between variable and fixed costs? Also explain how the total variable cost and total fixed cost is affected by increasing the number of units produced? What happens to the total variable cost per unit and total fixed cost per unit? 3. What is a mixed cost? 2. The high-low method of analyzing mixed costs uses only two observation points: the high and low points of activity. Are these always the best points for prediction purposes? Why or why not?Which one of the following is not an assumption of CVP analysis? The behavior of costs and revenues are linear within the relevant range. Sales mix remains constant. All units produced are sold. All costs are variable costs.
- With all other data held constant, an increase in variable costs should do which of the following? Group of answer choices increase breakeven units. have no impact on breakeven units. decrease breakeven units. increase contribution margin per unit.The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation Cost Hours $100,000 3,500 61,o00 2,000 85,000 2,600 78,200 2,450 91,000 3,000 110,400 3,900 106,000 3,740 93,000 3,380 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behavior of the costs Calculate the operating costs for 3,750Using the conventional method I got the cost per unit for Product A: 54 GBP and Product B: 110 GBP and using the ABC principles I got the cost for Product A: 80 GBP and for Product B: 63 GBP. What are the causes for any differences in the cost based on obtained results?