When the volume of production decreases, fixed cost per unit will____ a. Increases b. Constant c. Decreases d. Remain fixed
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A: The different costs of production are classified as fixed costs and variable costs. The fixed cost…
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A: The answer to the multiple choice questions are give below.
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A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Fixed costs per unit increase proportionately with increases in volume of activity within the…
A:
Q: Fixed cost per unit of output decreases as volume increases. True or False True False
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Q: Within the relevant range of activity, variable cost per unit will: O a increase in proportion with…
A: There are two type of main costs in the business. These are fixed costs and variable costs.
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Q: 5. Which of the following statements is correct? A. total fixed cost remain constant while variable…
A: Solution:- The following statement is true as follows under:-
Q: When activity volume decreases in the short term, which of the following is true? (hint: some costs…
A: VC per unit remains constant as the total VC changes with direct proportion to the volume of output.…
Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…
A: Total fixed cost remains same at all level of output.
Q: breakeven point increases
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A:
Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…
A: Contribution margin: Contribution margin is the excess of selling price over the variable costs of a…
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A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…
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Q: Manufacturing overhead combined with direct materials is known as conversion cost.
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: If a company increases its fixed cost for product B, then the contribution margin per unit will…
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Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: Contribution margin is the difference of sales price per unit and variable cost per unit.
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A: Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…
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A: Introduction Break-even point: Break-even point is the point of sales at which total cost is equal…
Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…
A: Hi student SInce there are multiple questions, we will answer only first question. Since first…
Q: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…
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A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…
Q: When volume of production decreases fixed cost per unit will
A: We know: Fixed Cost remains constant at all levels of production. Fixed cost per unit = Fixed Cost…
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Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The bteak even sales are the sales where business earns no profit no loss during the period.
Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: Holding other factors constant, a company's contribution margin per unit will increase with: a. All…
A: Contribution margin per unit is the amount remaining with the entity on selling each unit of product…
Q: Fixed cost are conventionally deemed to be: Select one: a. Those unaffected by inflation b. Constant…
A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…
Q: Which of the following best describes a fixed cost? A. It may only change in total when such…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…
A: The total cost of a product can be variable or fixed cost.
Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…
A: The contribution margin represents the portion of sales that is left after the deduction of variable…
Q: The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the…
A:
Q: If the total contribution margin increases and fixed costs do not change, then net income can be…
A: The CVP or cost volume profit analysis helps in determining the effect of changes in the sales price…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: Holding other factors constant, a company's contribution margin per unit will increase with: a. All…
A: Contribution margin per unit is the value that can be determined by reducing the variable costs from…
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- 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 should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable costThe 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
- Which of the following describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing productionWhich of the following describes the behavior of the fixed cost per unit? Decreases with decreasing production Decreases with increasing production Increases with increasing production Remains constant with changes in productionWhen the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the same
- Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.What is characteristic of variable costs within the relevant range? A. Decrease in total as as output increases B. Stay constant in total as output increases C. Decrease on a per-unit basis as output increases D. Stay constant on a per-unit basis as output changesWhich of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.They will decrease as production decreases. B.They will increase as production increases. C.They will increase as production decreases. D.They will remain the same as production levels change.
- Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output has decreased. In terms of cost per unit of output, we would expect that: cost A has decreased. cost B has remained unchanged. cost B has decreased. cost A has remained unchanged.When volume of production decreases fixed cost per unit willWhat happens to average fixed cost as more products are made? a. Remains the same b. Increases c. Decreases d. Fluctuates