Which of the following statements describes variable costs?A. Costs that vary on a per-unit basis as the level of activity changesB. Costs that vary in total in direct proportion to changes in the level of activityC. Costs that remain the same in total dollar amount as the level of activity changesD. Costs that vary on a per-unit basis, but remain the same in total as the level of activity changes

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: 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: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is  a) Fixed costs Fixed cost…

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: Which costs will change with a decrease in activity within the relevant range? Unit variable cost…

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

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: 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: A total cost equation can be used to predict future costs for various activity levels. Write the…

A: Concept The total cost is the sum of variable cost and fixed cost incurred For example if variable…

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: 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: 1. The total variable costs charged to expense for the year, assuming that NUBD uses variable…

A: Solution:- 1)Calculation of total variable costs charged to expense for the year, assuming that NUBD…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: A variable cost is a cost thata. varies per unit at every level of activity.b. occurs at various…

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

Q: Opportunity costs; a. Are treated as period costs under variable costing b. Have already been…

A: Introduction:- Opportunity cost means as follows under:-

Q: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…

A: Fixed cost is not affected by the changes in the level of activity.

Q: 1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately…

A: Answer 1. As activity increases, unit variable cost increases proportionately with activity.

Q: A fixed cost total rises or falls in approximate proportion to changes in activity base. Select one:…

A: The costs incurred can be defined as fixed Cost and variable cost

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: A cost which changes in proportion to changes in volume of activity is called a: *       a. fixed…

A: Costs are the expenses or amounts incurred in the business for manufacturing or selling of products.…

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 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: Variable costs are expenses that ________.   a.remain constant on a per-unit basis but change in…

A: Variable costs as the name suggests are those costs which are variable in nature or these costs will…

Q: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and…

A: Variable costs is one of the one of the component of the total cost. Variable cost is the cost which…

Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: Describe how total variable costs and unit variable costs behave as the level of activity increases?

A: Variable cost varies with the changing level of activity i.e. if the activity increases the variable…

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: 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: A factor that causes or leads to a change in a cost or activity is a(n) a. slope. b. intercept. c.…

A: (a) Costs are the expenditures that are incurred in the business for manufacturing or selling of…

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: Describe how total fixed costs and unit fixed costs behave as the level of activity increases

A: Fixed costs are those costs that remain fixed irrespective of the level of activity.

Q: Instructions a. Define the terms variable costs, fixed costs, and mixed costs. b. Classify each cost…

A: Answer a) VARIABLE COST:- A variable cost is an expense that rises or falls in direct proportion to…

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: Explain the impact of an increase in the level of activity (or cost driver) on (a) total fixed cost…

A:

Q: Fixed costs are costs that: Select one: a. Neither of the above b. remain the same per unit at every…

A: Fixed Cost Correct Answer = Option B = Remain the same per unit at every activity level Variable…

Q: Variable costs are costs that: Select one: a. Both (a) and (b) above. b. vary in total directly and…

A: The costs incurred in production can be classified as variable cost, fixed cost and mixed cost.

Q: Variable costs vary in total as activity varies. vary on a per unit basis as activity varies. O are…

A: Total costs are comprised of two costs: (i) Fixed costs and (ii) Variable costs. Fixed costs are…

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: 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…

Q: What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable…

A:

Q: Variable costs are costs that: vary inversely proportional with changes in activity Remain constant…

A: Variable cost refers to the cost that varies in total amount with the changes units produced by the…

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…