Which of the following describes the behavior of the fixed cost per unit?

Q: Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs…

A: CVP Chart:   Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…

Q: How does the variable cost per unit change as the level of activity (or cost driver) increases? Why?

A: A variable cost changes is directly proportional to the change in the level of activity or cost…

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: What is the effect of an increase in activity on the following items? a. Total variable costs b.…

A: a) An increase in activity would increase the total variable costs proportionately. Variable cost is…

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: :The change in total cost from producing another unit of output equals the following Average total…

A: The marginal cost of production is the change in total production cost that comes from making or…

Q: Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed…

A: Variable Cost change with level of activity Fixed Costs per unit changes when the level of activity…

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: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

Q: What effect does an increase in volume have on: Unit fixed costs? Unit variable costs? Total…

A: Increase in volume simply means the increase in production level.

Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…

A: Average cost per unit only rewards the manager for removing tasks or materials from the process…

Q: Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a.…

A: Variable cost: The cost which changes according to the level of activity. These are not fixed in…

Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…

A: Variable costs: These are the costs that proportionately change with the changes in the activity…

Q: Select the correct statement concerning the cost-volume-profit graph at right:   At point B, profits…

A: In order to determine the Breakeven point (units), the total fixed cost is required to be divided by…

Q: What is the effect of an increase in activity on total variable costs,variable cost per unit of…

A: Total cost refers to the cost or amount incurred by the company in production of its goods and…

Q: What is the effect of an increase in variable costs as a percentage of sales onthe contribution…

A: Variable cost refers to the cost which varies according to the volume of produced units. Increase in…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: In the standard cost formula Y = a + bX, what does the "Y" represent? total cost variable cost per…

A: Variable cost: Variable cost refers to that cost which gets increased with the increase in the…

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

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: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which of the following statements related to CVP chart is not true? O a. To calculate the total…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…

A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…

Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…

A: Option a is correct.

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…

Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…

A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…

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…

Q: Answer the following: 1.  The slope of line A is equal to the:  a. fixed cost per unit. b. selling…

A: Using fixed cost , total cost and sales revenue, the CVP chart graphically represents the…

Q: Variable costs are costs that:  a) Vary inversely proportional with changes in activity b) Remain…

A: Total variable costs increase with the increase in activity and decrease with the decrease in…

Q: If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit,…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…

Q: Show how each of these costs will behave as the volume of activity decreases.…

A: The volume of activity directly impacts the variable cost because the variable cost changes directly…

Q: Variable costs are costs that:    A.vary inversely proportional with changes in activity B.Remain…

A: Variable cost :  Variable costs are constant per unit and change in total while fixed costs always…

Q: How do you calculate Break-even Point? Select one: a. Fixed cost/ Contribution per unit b.…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Which of the following describes the behavior of the variable cost per unit?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

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: Which of the following describes the behavior of total variable and total fixed costs when level of…

A: Different costs associated with production process are - Fixed cost and variable cost. For example:…

Q: When production increases, the total fixed cost will

A: Fixed cost is a type of costs which remains fixed irrespective of production levels. Whether…

Q: What happens to the total variable costs and the total fixed costs when the level of activity…

A: Formula: Total cost = Variable cost + Fixed cost Sum of both variable and fixed cost derives the…

Q: In describing the cost formula equation Y = a + bX, which of the following statements is NOT…

A: Cost formula equation shows the combination or mixture of fixed costs and variable costs for…

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: Which of the following describes the behavior of the fixed cost per unit?             Decreases…

A: Fixed cost is the cost that remains constant irrespective of the level of production. Whereas…

Q: In the fixed cost per unit does the it increase as activity decreases and will decrease as activity…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: Which of the following do not increase or decrease when the volume of production changes? O a. Fixed…

A: Some cost do not get affected by the volume of production. It remains same at all the levels of…

Q: How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why?

A: Fixed cost refers to such overheads that are not directly related to the business and which do not…