Chapter 6 for BB

A cost which changes in proportion to changes in volume of activity is called a: *       a. fixed cost       b. controllable cost       c. variable cost       d. opportunity cost

2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED COST C. MIXED COST D. STEP COST

An input whose cost is determined by the quantity of input consumed is a A. Fixed cost B. Variable cost C. Step cost D. Variable cost with fixed component

1.) Explain the effects of an increase in the volume of activity on the following costs. (Assume volume remains within the relevant range .) a. Total variable costs. b. Variable cost per unit. Total fixed cpst . d. Fixed cost per unit. e. Total semi variable costs. f. Semi variable cost per unit .

Answer the following: 1.  The slope of line A is equal to the:  a. fixed cost per unit. b. selling price per unit. c. profit per unit. d. semivariable cost per unit. e. unit contribution margin.   2. Line C represents the level of:  a. fixed cost. b. variable cost. c. semivariable cost. d. total cost. e. mixed cost.   3. Line B represents the level of: a. fixed cost. b. variable cost. c. semivariable cost. d. total cost. e. mixed cost.   4. The slope of line B is equal to the: a. fixed cost per unit. b. selling price per unit. c. variable cost per unit. d. profit per unit. e. unit contribution margin.   5.  Line A is the:  a. total revenue line. b. Option 2 c. fixed cost line. d. variable cost line. e. total cost line. f. profit line.

Select the correct statement concerning the cost-volume-profit graph at right: a. The point identified by "B" is the break-even point. b. Line F is the variable cost line. c. At point B, profits equal total costs. d. Line E is the total cost line. Line F Line E Line D

Variable costs are costs that:    A.vary inversely proportional with changes in activity B.Remain constant as activity changes C.Decrease on a per unit basis as activity increases D.Remain constant on a per unit basis as activity changes

costs that change proportionately according to the changes in the cost driver.......

Which of the following best describes a variable cost? A cost that: a. Represents a fixed proportion of total costs b. Has a direct relationship with outputc. Is sometimes also known as an indirect cos d. Falls on average, as output increases.

6. Which of the following statements is correct about fixed costs?      a. Fixed costs vary on per unit basis as well as in total as the level of activity changes       b. Fixed costs remain the same on per unit basis but vary in total as the level of activity changes       c. Fixed costs vary in total as the level of activity changes       d. Fixed costs vary on per unit basis but remain the same in total as the level of activity changes

Which of the following best describes a fixed cost? a.Cost representing a fixed proportion of total costs b.Cost directly related to output c.Cost that remains at the same level up to a particular level of output . d.Cost that remains at the same level when output increases.

16 Which costs will change with a decrease in activity within the relevant range? Select one: a. Unit fixed cost and total variable costs. b. Unit variable cost and unit fixed cost. c. Total fixed costs and total variable costs. d. Unit fixed cost and total fixed costs.

4. In a typical cost formula a. Fixed costs are per unit and variable costs are per unit b. Fixed costs are per unit and variable costs are in total c. Fixed costs are in total and variable costs are in total Fixed costs are in total and variable costs are per unit

Select the correct statement concerning the cost-volume-profit graph at right:   At point B, profits equal total costs. Line E is the total cost line. Line F is the variable cost line. The point identified by "B" is the break-even point.

simple cost analysis method to identify fixed costs and variable costs in a linear cost function is ........ method

(a) Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit variable cost remain constant regardless of the level of activity   a. Both statements are true b. Both statements are false c. Statement A is true and statement B is false d. Statement A is false and statement B is true

Question 8 Which costs will change with a decrease in activity within the relevant range? Unit variable cost and unit fixed cost. O Unit fixed cost and total fixed cost. Unit fixed costs and total variable cost. O Total fixed costs and total variable cost.

Ch. 5 Fixed Costs/Per Unit Pleaes explain the following concept/rule and give an example:  Why do fixed costs on a per unit bases decrease with an increase in activity level?  Also what is the difference between a fixed cost and a per-unit fixed cost?