Variable costs are expenses that ________. a.remain constant on a per-unit basis but change in total based on activity level b.remain constant on a per-unit basis and remain constant in total regardless of activity level c.remain constant in total regardless of activity level within a relevant range d.decrease on a per-unit basis as activity level increases
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- Fixed costs are expenses that ______________________________ . A. vary in response to changes in activity level B. remain constant on a per-unit basis C. increase on a per-unit basis as activity increases D. remain constant as activity changesWhich of the following statements is true regarding average fixed costs? A. Average fixed costs per unit remain fixed regardless of level of activity. B. Average fixed costs per unit rise as the level of activity rises. C. Average fixed costs per unit fall as the level of activity rises. D. Average fixed costs per unit cannot be determined.The amount of a units sales price that helps to cover fixed expenses is its ____________________. A. contribution margin B. profit C. variable cost D. stepped cost
- When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unitWhen the number of units in ending inventory increases through the year, which of the following is true? A. Net income is the same for variable and absorption costing. B. Net income is higher for variable costing than for absorption costing. C. Net income is higher for absorption costing than for variable costing. D. There is no relationship between net Income and the costing method.Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain constant as activity changes C.Decrease on a per unit basis as activity increases D.Remain constant on a per unit basis as activity changes
- (a) Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit variable cost remain constant regardless of the level of activity a. Both statements are true b. Both statements are false c. Statement A is true and statement B is false d. Statement A is false and statement B is trueWhich of the following statements describes variable costs?A. Costs that vary on a per-unit basis as the level of activity changesB. Costs that vary in total in direct proportion to changes in the level of activityC. Costs that remain the same in total dollar amount as the level of activity changesD. Costs that vary on a per-unit basis, but remain the same in total as the level of activity changesWhich of the following describes the behavior of the variable cost per unit? Remains constant with changes in the activity level Varies in decreasing proportion with changes in the activity level Varies in increasing proportion with changes in the activity level Varies in direct proportion with the activity level
- Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and proportionately with changes in the activity level c. Both (a) and (b) above. d. remain the same per unit at every activity level1.) Explain the effects of an increase in the volume of activity on the following costs. (Assume volume remains within the relevant range .) a. Total variable costs. b. Variable cost per unit. Total fixed cpst . d. Fixed cost per unit. e. Total semi variable costs. f. Semi variable cost per unit .1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately with activity, decreases by a fixxed amount, decreases proportionately with activity, remains constant? 2. Variable cost are costs that, Vary inversely with changes in activity, increase on per-unit basis as activity increases, decrease on a per unit basis as activity increases, remains constant as activity changes, vary directly with changes in activity?