20. Which of the following statements is correct about variable costs?      a. Variable costs vary on per unit basis but remain the same in total as the level of activity changes       b. Variable costs vary on per unit basis as the level of activity changes       c. Variable costs vary in total in direct proportion to changes in the level of activity       d. Variable costs remain the same in total as the level of activity changes

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: ‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: solution : concept : variable costs               variable costs are those costs which varies along…

Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…

A: The different costs of production are classified as fixed costs and variable costs.  The fixed cost…

Q: If the level of activity increases within the relevant range, which of the following will also…

A: Fixed costs are those costs which do not change as the volume of production increases or decreases.…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

Q: Ch. 5 Fixed Costs/Per Unit Pleaes explain the following concept/rule and give an example:  Why do…

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

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: 6. What are costs that vary in proportions to changes in the activity base?

A: In cost accounting, different types of costs are incurred and accounted for. Some costs do not…

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 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: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

Q: Within the relevant range of activity fixed costs remain constant in total costs and activity can be…

A: A certain activity level that is limited by a minimum and maximum quantity is referred to as the…

Q: 17. What are costs that remain the same in total dollar amount as the activity base changes?

A: The costs that remain same in total dollar amount is  Both cost per unit and activity base are…

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: How would the equation for total costs be written using the following? y = total costs v =…

A: Variable costs are costs that change with change in volume of production . Whereas, Fixed costs…

Q: 3. Which of the following is correct regarding a relevant range? a Total variable costs will not…

A: A Relevant Range is the Range of Activity above which the Variable Cost Per Unit and The Total Fixed…

Q: Within the relevant range, variable costs can be expected to: Ovary in total in direct proportion to…

A: The question is based on the concept of Cost Accounting. Variable cost is the cost that remains 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: 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: Describe the behavior of fixed and variable costs as activity levels change. Use graphs to…

A: Answer:-  Fixed cost meaning:- Fixed costs are expenses that remain constant regardless of whether…

Q: Within a relevant range, costs that increase in direct proportion to volume are:   Question 9…

A: Variable costs are proportional to the level of output within a relevant range. On the other hand,…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: Variable costs per unit are affected by an increase or decrease in activity. True or False True…

A: Variable Cost is that type of cost which is associated with the number of units produced or volume…

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: Costs that change in total but not proportionately with changes in the activity level are mixed…

A: The costs incurred during the production process can be classified as fixed, variable and mixed…

Q: Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: From the cost behaviour perspective, there are two types of costs. One is fixed costs and other is…

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: Which of the following is correct concerning reactions to INCREASES in activity? Variable Cost Per…

A: Expenses that change in direct proportion to the volume of output or activity in a business are…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…

A: Option a is correct.

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: 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: A cost increases or decreases in intervals as activity changes.     a. historical cost b. step cost…

A: Introduction: Fixed costs: The costs which are fixed in nature , it won't varies according to the…

Q: 2. The variable cost per unit of activity increases as activity increases. ⦁    True ⦁    False

A: The costs that change with the change in the level of activity are referred to as a variable costs.…

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: Within the relevant range: Select one: O A. variable cost per unit decreases as production…

A: Within the relevant range: (B) Fixed cost increases as the production decreases. With fewer goods…

Q: When the level of activity decreases, variable costs will:A - increase per unit.B - increase in…

A: Step 1:When the level of activity decreases, variable costs will change as follows: A - Increase per…

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.