Which of the following is true of a variable cost? Total variable cost remains constant with changes in the number of goods sold.   Unit variable cost decreases with an increase in production.   Unit variable cost remains constant with changes in production.   Total variable cost decreases with an increase in the number of goods sold.

Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Formula: Contribution margin per unit = Selling price per unit – Variable cost per unit.…

Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…

A: The different costs of production are classified as fixed costs and variable costs.  The fixed cost…

Q: On the CVP graph, the next unit sold will increase total cost by an amount equal to the Select one:…

A: CVP (Cost Volume Profit) graph shows the connection between the costs incurred in production and…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: on the cost volume profit graph, the area between the total costline and the sales line before the…

Q: The variable cost ratio is calculated as: O a. Selling price per unit - the variable cost per unit O…

A: Variable cost: It can be defined as the cost that varies or changes with a change in the activities…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution Margin = Sales per unit - Variable 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: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: Fixed cost per unit of output decreases as volume increases. True or False True False

A: Any organization generally have two types of expenses - Fixed costs and variable costs. Fixed costs…

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: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit…

A: Contribution margin per unit is the sales revenue over and above variable costs in the business.…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: contribution margin is sales made less variable cost incurred is contribution margin

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Answer

Q: A company observed a decrease in the cost per unit. All other things being equal, which of the…

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

Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…

A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.

Q: Within the relevant range: a.        both total variable costs and total fixed costs will remain…

A: The costs incurred into the production are classified as fixed and variable costs. The variable…

Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…

A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…

Q: If the sales price and the variable cost per unit both increase by 12% and the fixed cost does not…

A:

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…

A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…

Q: A break-even chart has been set up to show the current break-even point. Due to an increase in the…

A: Introduction Break-even point: Break-even point is the point of sales at which total cost is equal…

Q: Contribution margin is it Sales less cost of goods sold or Sales less all variable and fixed…

A: First of all: Sales less Cost of goods sold will give us the gross profit earned from sales. Sales…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: This is part of break-even analysis.

Q: Contribution margin per unit is the amount by which a product's unit selling price exceeds its…

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

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.

Q: In the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even.…

A: Cost-volume-profit analysis is used inorder to analyse the relation between profits of the entity…

Q: If the number of units produced decreases, which of the following is true? answer choices…

A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: Contribution Margin Ratio: The contribution margin ratio shows the amount of difference in the…

Q: Which of the following is true? O Variable costs minus the fixed costs equals net income. O Total…

A: The income is calculated as excess of revenues over expenses.

Q: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…

A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…

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: :The variable cost ratio is calculated as contribution margin ratio - (the selling price per…

A: Variable cost Ratio= Variable Cost per unit/ Selling price per unit

Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…

A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…

Q: The contribution-margin ratio is:  Select one: a. unit contribution margin divided by the selling…

A: The contribution margin ratio is the % of the sales revenue which is remaining after substracting…

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: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Break Even Point is a point where unit sold gives no profit or loss to the firm.  Beyond Break Even…

Q: The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per…

A: Contribution margin is the sales revenue over and above its variable costs. Contribution margin =…

Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…

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

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: The contribution margin ratio is calculated as: O a. The selling price per unit ratio / variable…

A: Contribution is the amount obtained after deducting the variable costs from the sales.

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: The break-even point can be calculated with the following formula: Total fixed expenses / (Variable…

A: Break-even point = Total fixed expenses / (Selling price per unit - Variable cost per unit)

Q: All else being equal , what happens to the unit contribution margin and the contribution margin…

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: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…