QUESTION 16 When the level of activity decreases within the relevant range, the fixed cost per unit will: O remain the same. O increase. decrease. O The effect cannot be predicted.
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- 24.Within the relevant range, if there is a change in the level of the cost driver then a. fixed and variable costs per unit will change. b. fixed and variable costs per unit will remain the same. c. fixed costs per unit will remain the same and variable costs per unit will change. d. fixed costs per unit will change and variable costs per unit will remain the same. Option 2Ch. 5 Fixed Costs/Per Unit Pleaes explain the following concept/rule and give an example: Why do fixed costs on a per unit bases decrease with an increase in activity level? Also what is the difference between a fixed cost and a per-unit fixed cost?22. Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per unit remain constant? The contribution margin increases. The breakeven point increases. The contribution margin decreases. The breakeven point decreases.
- 35. As production increases within the relevant range, Group of answer choices a. None of the statements is true. b. fixed costs will vary in total. c. variable costs will vary on a per unit basis. d. fixed costs will vary on a per unit basis.20. Which of the following statements is correct about variable costs? a. Variable costs vary on per unit basis but remain the same in total as the level of activity changes b. Variable costs vary on per unit basis as the level of activity changes c. Variable costs vary in total in direct proportion to changes in the level of activity d. Variable costs remain the same in total as the level of activity changes41.A cost driver a. causes fixed costs to rise because of production changes. b. has a direct cause-effect relationship to a cost. c. can predict the cost behavior of a variable, but not a fixed, cost. d. is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume.
- 14. If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin and the break-even point? Contribution margin Break-even point A. Increase Decrease B. Decrease Increase C. Unchanged Increase D. Unchanged Unchanged Multiple Choice Choice A. Choice C. Choice B. Choice D.24i. It is simple to apply.ii. It causes unit production costs to fluctuate in the opposite direction with the production volume.iii. It causes inconsistencies in period profits. Which of the following is or are the drawbacks of the full cost method?a)i and iii B)i and ii NS)only ii D)only i TO)ii and iiiHow is the quantity factor for an increase or a decrease in the amount of sales computed in using contribution margin analysis?
- Discuss the two factors affecting both sales and variable costs to which a change in contribution margin can be attributed.17. "Within the relevant range, if there is a change in the level of the cost driver, then:" fixed costs per unit will change and variable costs per unit will remain the same fixed costs per unit will remain the same and variable costs per unit will change fixed and variable costs per unit will remain the same fixed and variable costs per unit will change8. Which cost will fall as production is reduced? Total variable costs Variable costs per unit Total fixed costs Fixed costs per unit
