Which of the following is true about the changes in fixed cost? An increase in production will result in an increase in per unit fixed cost.   A decrease in fixed cost will result in an increase in variable cost.   An increase in production will result in a decrease in per unit fixed cost.   A decrease in production will result in an increase in total fixed cost.

Q: When should a segment be dropped?     only when the decrease in total contribution margin is less…

A:

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: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: Under the contribution income statement, a company’s contribution margin will be: Higher if fixed…

A: Contribution margin:

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: With respect to total fixed costs, which of the following statements is true?    a They will…

A: Cost refers to the expenditure incurred by an individual or entity in process of creation of goods…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Select the correct statement regarding fixed costs.  A) Because they do not change, fixed costs…

A: Fixed costs are the costs that remain constant irrespective of the volume of production.

Q: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…

A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…

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: As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or…

A:

Q: If the fixed expenses of a product increase while variable expenses and the selling price remain…

A: Break even point is the point at which the original cost equals the market price. It is where…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will…

A: The break even point is incurred when all the costs are covered by the sales and there is no profit…

Q: If fixed costs related to a product increase, while variable costs and sales ?price remain constant,…

A: Breakeven point is that point of sales revenue at which business is covering its fixed costs and…

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: A decrease in production will result in an increase in Total Variable Cost True False

A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…

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: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…

A:

Q: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…

A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…

Q: Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output…

A: There are two cost fixed cost and variable cost. Cost per unit depends on fixed and variable costs…

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…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…

Q: The break-even point is that level of activity where a. total contribution margin equals the sum of…

A: At break-even point, there is no profit or no loss.

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: If a company increases its fixed costs for Product B, then the contribution margin per unit will…

A:

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

A: Option a is correct.

Q: Which of the following is true of a variable cost? Total variable cost remains constant with…

A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio.

Q: When the level of output increases within the relevant range, _____.   a.fixed cost per unit does…

A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…

Q: When the level of activity increases, total fixed costs a. decrease. b. remain the same. c.…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Within the relevant range, the change in activity level will result in   a. A change in both of…

A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…

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: 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: When should a segment be dropped?

A: Any Segment will be dropped only when  there is increase in the Net operating income after the…

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: Holding all other factors constant, the break-even point will be decreased by increasing the fixed…

A: The correct answer is Option C.

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: a.…

A: Break-even point: In the accounting term break-even point is a condition where the income or profit…

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: 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: If a firm changes its activity level * all costs should change variable costs should change…

A: The answers for the multiple choice questions and relevant explanation are presented hereunder :…

Q: Which of the following defines variable cost behavior? a. Total cost reaction to increase in…

A: The variable cost is the cost that affects in the direct proportion to the units of activity in…

Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…

A: Fixed cost indicates the cost which remains constant to a certain level of activity after which the…

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: What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs…

A: Cost is referred as the essential part of the business or a company which looks after the costs such…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…