The High-Low method is used to separate the variable and fixed elements of mixed costs. Select one: O a. TRUE O b. FALSE

Q: ‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: solution : concept : variable costs               variable costs are those costs which varies along…

Q: With reference to Bryony’s Pasta, distinguishbetween fixed costs and variable costs.

A: The total cost can be divided into two categories. Fixed cost:  cost indicates the fixed and does…

Q: Which of the following is called minimum point of production at which total cost is recovered:…

A: The margin of safety sales is calculated as difference between current sales and break even sales.

Q: The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except The…

A: As per US gaap, Inventory is valued at lower-of-cost-or-market value.

Q: The reason for some costs to be mixed in nature is? A. Presence of sunk cost in the cost structure.…

A: Fixed costs are those costs which do not change with change in level of activity like Rent Expense…

Q: Which of the following statements is true about fixed and variable costs? * Both costs are constant…

A: Solution:- When sales units are increases or decreases the total sales also increase or decreases…

Q: Given the following, the only item that will generally be included in relevant cost analysis is:…

A: Introduction:   The phrase "relevant cost" in managerial accounting refers to avoidable costs that…

Q: If costs are not responsive to changes in activity level, then these costs can be best described as…

A: a. Mixed:-  Mixed Cost is the combination of Fixed Cost and Variable Cost. It cannot consider as an…

Q: Why is there a need to separate mixed cost as to variable & fixed cost?

A: Variable cost: these are the costs which vary with the units produced. These costs increase by…

Q: Give the general formula for a mixed cost

A: Cost:   It refers to the economic value incurred by an organization for manufacturing a product or…

Q: Fixed, variable, and semi-variable costs all have a distinct relationship.

A: Introduction: To put it simply, a cost is a measure of how much money is spent to produce a product…

Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…

A: Fixed cost will change and total cost will remain the same.

Q: The “line of best fit” may also be described as: a.the total variable cost line b.the total fixed…

A: Variable cost- A variable cost is a commercial expense that changes in amount to how much a…

Q: Problems with a fixed cost that is incurred only if an activity is undertaken at a positive level…

A: If there is a conduct of any activity at any positive level then it incurs an amount of fixed cost…

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at the origin. the level…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Using the high-low method to separate the maintenance costs into their variable and fixed cost…

A: Variable Cost: variable cost is the cost that varies in total cost with change in the unit…

Q: Which of the following statements regarding graphs of fixed and variable costs is true?  (a)…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…

A: Variable cost is the cost incurred during the production of units which will be directly…

Q: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

Q: costs in which there are variable components and fixed components.....

A: Fixed costs will not change with the change in the level of production. Variable costs will change…

Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…

A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…

Q: ) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable…

A: Solution Answer for part a) and part b) i) and  ii) is given Concept The formula for high low method…

Q: Which of the following costs has no relationship with the level of output? a) Semi-variable costs.…

A: Semi variable and variable costs has a direct relationship with the level of output. Stepped fixed…

Q: Differential Costs are the difference in cost between any two alternative choices True False

A: Differential cost is the cost difference when two alternatives are projected. It also the cost…

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: A technique used to split mixed costs into fixed and variable costs is called Select one: a. High…

A: The correct option is  b. Behavior analysis method

Q: Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.…

A: Variable costing simply covers the variable costs actually incurred in production, but not any of…

Q: Opportunity costs are always: Multiple Cholce sunk costs. relevant costs. fixed costs. varlable…

A: Sunk Cost - It is a cost that has already been spend , and cannot be recovered back  .  Relevant…

Q: The reason for some costs to be mixed in nature is: Presence of sunk cost in the cost structure.…

A: Mixed Cost:- This cost is a combination of the fixed cost and variable cost. It means that one…

Q: TRUE OR FALSE The general principle in determining the number of cost pools is that a separate cost…

A: Solution: The general principle in determining the number of cost pools is that a separate cost pool…

Q: An indirect cost for one cost object can be a direct cost for a different cost object. True False

A: Direct cost means the cost directly related with cost object and indirect cost means which can not…

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: Which of the following statements is true? O a. Activity-based costs per unit are always greater…

A: The volume based costing represents the cost allocation to a single cost pool. The high volume…

Q: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable…

A: Workings Particulars  Lower limit   Upper limit  Using High-low method Variable Fixed…

Q: Only variable costs can be differential costs. Do you agree? Explain

A: Answer

Q: In using least-squares to estimate the variable and the fixed components in a mixed cost, these two…

A: Least Square method (Linear regression) is a very accurate method for dividing cost into variable…

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: 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: 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: Joint costs are inseparable after the split-off point. True False

A: The correct answer is “False”.

Q: Which of the following statements is true? Select one: one: a. The most complex of the cost…

A: High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…

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: A cost that has characteristics of both a varlable cost and a fixed cost is called a Oa,…

A: Reason:- Mixed cost refers to the cost which is a combination or mix of both fixed cost and variable…

Q: Determine the variable cost per unit and the fixed cost using the high-low method. 2. What is the…

A: Variable Cost per unit= (Highest units - Lowest units)/ (Highest Cost- Lowest Cost)…

Q: Analyze a mixed costusing the high-low method.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

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,…

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.