What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs?

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: What effect does an increase in volume have on—b. Unit variable costs?

A: Variable cost: Variable costs are the total costs that changes with the change in level of activity.…

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: when total contribution margin equals total fixed cost this indicates operating income

A: The contribution margin is described as that amount which is computed after reducing variable costs…

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: 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: 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: How do you find the variable cost per unit produced and sold ?

A: First step in computing the variable cost of unit produce and sold is to analyse the nature of…

Q: What can be the Direct-Variable Costs? Explain. What can be the Direct-Fixed Costs? Explain. What…

A: Direct variable cost are those cost incurred in line with production or for a particular product or…

Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…

A: Fixed cost will change and total cost will remain the same.

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: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: revenues equal total fixed costs e given answers on margin equals total costs revenues equal total…

A: A CVP analysis is used to determine the sales volume required to achieve a specified profit level.…

Q: What are costs that have characteristics of both a variable and fixed cost?

A: A cost that has characteristics of both a variable cost and a fixed cost is called a mixed costs or…

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: Types of Fixed and Variable cost with the help of example and graph?

A: Costs are the total spent amount for the expenditures and for producing the goods and services.…

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: What is a variable cost? Identify two variable costs.

A:

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: What is the correlation between fixed, variable, and semi-variable costs??

A: Introduction:- Fixed Costs – Costs are same irrespective of the number of output produced Variable…

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: What is a relationship between fixed, variable and semi-variable cost?

A: Cost can be defined as the amount incurred upon the production of goods and services for the final…

Q: The cost that vary accordingly to the volume of output is O a. Variable cost O b. Both fixed and…

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

Q: In applying the high-low method, what is the unit variable cost?

A: Formula: Variable cost per unit= Total cost of high actvity- Total cost of low actvityHighest…

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: How does the length of the time horizon affect the classification of a cost as fixed or variable?…

A: Cost are being classified as variable and fixed normally. It is necessary to bifurcate the cost in…

Q: What effect does an increase in volume have on—a. Unit fixed costs?

A: Fixed costs are those costs of business which remain fixed in total irrespective of change in volume…

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: What is a fixed cost? A variable cost? A mixed cost? Give an example of each

A: Costs are the expenses incurred in business. It means costs incurred for the manufacturing 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: Hi,   How do you calculated variable production cost per unit?

A: Answer:Variable production cost per unit is calculated by dividing Total variable production 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: 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: 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: 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: Which of the following statements describes variable costs?A. Costs that vary on a per-unit basis as…

A: The financial position of the company can be arrived from the income statement prepared by 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: 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 effect does an increase in volume have on—d. Total variable costs?

A: