With respect to total fixed costs, which of the following statements is true?    a They will remain the same as production levels change within the relevant range. b They will increase as production decreases within the relevant range. c    They will decrease as production increases within the relevant range. d    They will decrease as production decreases within the relevant range.

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: 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: 5. Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: A cost driver   a. causes fixed costs to rise because of production changes. b. has a direct…

A: According to activity based costing, the overhead cost is applied to the production on the basis of…

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 correct about fixed costs?      a. Fixed costs vary on per unit…

A: SOLUTION EXPLANATION- 1-FIXED COST DOES NOT CHANGE BASED ON ACTIVITY. 2-THE COST WILL STAY THE SAME…

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 statements is NOT true about costs per unit within the relevant range?…

A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

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

A:

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: 1. Relevant of differential cost analysis a takes all variable and fixed costs into account to…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…

A: Cost Driver - is the factor of cost due to change in cost driver cost of the activities also get…

Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…

A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…

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: At the breakeven point Select one: a. Fixed costs will be equal to variable costs b. Sales will be…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: Which one of the following statements about fixed costs is correct? -The average fixed cost per…

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

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

A: Option c is the answer.

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

A: In this question, we have been asked to tell the cost, whose level of output does not have any…

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: 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: 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: Under variable costing, all fixed costs (including fixed product costs) are expense in the period…

A: The matching principle is the fundamental concept of accounting. It suggests that the expenses…

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: 17. "Within the relevant range, if there is a change in the level of the cost driver, then:"…

A: Fixed cost:- Fixed cost is defined as the cost that do not change due to change in the level of…

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: 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.

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.