Which of the following statements regarding graphs of fixed and variable costs is true?  (a) Variable costs can be represented by a straight line where costs are the same for each data point. (b) Fixed costs can be represented by a straight line starting at the origin and continuing through each data point. (c) Fixed costs are zero when production is equal to zero. (d) Variable costs are zero when production is equal to zero. (e) Fixed and Variable costs are curvilinear form above zero on the “Y” axis.

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: Which of the following is NOT true of variable costing?     a. Profits may increase though sales…

A: Variable costing is a concept used in managerial and cost accounting in which the fixed…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

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: On a graph, the Total Variable costs line appears to be horizontal in nature. True False

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: The left column lists several cost classifications. The right column presents short definitions of…

A: Fixed Cost: Fixed cost refers the cost which remains constant for particular time duration and there…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: Which of the following is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

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: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…

A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…

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: 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: In determining cost behavior in business, the cost function is often expressed as Y=a+bX. Which one…

A: There are two types of costs in the business, one is fixed costs and other is variable costs. Fixed…

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: A favorable cost variance occurs when a. actual costs are the same as standard costs b. actual costs…

A: solution note Dear student as per the Q&A guideline we are required to answer the first question…

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at the origin. the level…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Which of the following statements regarding graphs of fixed and variable costs is true? (01) (a)…

A: Variable costs means those type of costs which change in same direction in respect to production. If…

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at a. the origin. b. the…

A: Definition:   Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

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 statements related to CVP chart is not true? a. None of the given answers. O…

A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…

Q: Which of the following are assumptions associated with the cost equation? Check all that apply. The…

A: Cost equation means a line or formula which shows both types of cost like fixed costs and variable…

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: Which of the following statements is true? a. Both variable and fixed cost change with the change in…

A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…

Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…

A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…

Q: Please explain thoroughly the statement below. (True/false), how and why?  "When expressed on a…

A: POINTS TO BE NOTED -    ** Fixed cost will remain constant irrespective of change in the level of…

Q: When using the visual-fit method to estimate a cost function, we can estimate the fixed cost by O…

A: Visual Fit Method  It is the most common method used by analysts for examining the cost by the way…

Q: Which of the following costs has no relationship with the level of output? a) Semi-variable costs.…

A: Semi variable and variable costs has a direct relationship with the level of output. Stepped fixed…

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: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…

A: The question is multiple choice question.The question is related to cost volume profit analysis.…

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: Which one of the following is not an assumption of CVP analysis?   The behavior of costs and…

A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…

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: Which one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…

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

Q: Which of the following statements about CVP analysis is false? O a. The CVP analysis assumes that…

A: Cost Volume Profit (CVP) analysis is only accurate if costs are kept constant within a given…

Q: PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is…

A: Variable costs are those costs that changes with change in level of activity. Fixed costs are costs…

Q: simple cost analysis method to identify fixed costs and variable costs in a linear cost function is…

A: High low method is method which separates the elements of fixed cost and variable cost from the…

Q: Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit…

A: Variable costs: These are the costs that vary depending on the volume of the activity. Fixed costs:…

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: Which of the following statements about determining the breakeven point is FALSE?       a)…

A: The breakeven point is the level of production at which the costs of production equals the revenue…

Q: Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether…

A: Hypothesis testing refers to the form of inferable statistics which allows us in making conclusions…

Q: On a graph, if a horizontal axis represents units of production and the vertical axis represents…

A: Solution: Total variable cost is dependent on nos of units produced and same will increase in same…

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: What is happening to average costs when marginal cost is greater than average cost at a specific…

A: When marginal cost is greater than average cost (including average variable cost or average total…

Q: Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of…

A: The monetary value paid for the acquisition of something, or to run the operations of the…

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: Write “True” if the statement is true and write “False” if the statement is false.   Fixed cost is…

A: The total cost of production includes the variable costs, fixed costs and mixed costs.

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…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.