Test bank ch 1.pdf -Foxit ReaderVIEWFORMPROTECTSHAREHELPnapShotD Fit Page QFrom Scanner会LinkO Fle Attachment157.60%abe HighlightipboardDFit WidthRotate LeftT Strikeout** BlankA Bookmarka Image AnnotationActualSize D Fit Visible m Rotate RightTypewriter NoteFromPDFU UnderlineFile a From ClipboardSign-O Audio & VideoViewCommentCreateProtectLinksInsertTest bank ch 1.pdf96) Which of the following is correct concerning reactions to INCREASES in activity?Total Variable CostVariable Cost Per UnitIncreaseDecreaseA)B)C)D)ConstantDecreaseDecreaseConstantIncreaseConstantA) Choice AB) Choice BC) Choice CD) Choice D

The variable costs are associated with the increase or decrease in the production level of the…

96) Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost Variable Cost Per Unit A) Increase Decrease Constant Decrease Decrease Constant Increase Constant

96) Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost Variable Cost Per Unit A) Increase Decrease Constant Decrease Decrease Constant Increase Constant

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

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Test bank ch 1.pdf
96) Which of the following is correct concerning reactions to INCREASES in activity?
Total Variable Cost
Variable Cost Per Unit
Increase
Decrease
A)
B)
C)
D)
Constant
Decrease
Decrease
Constant
Increase
Constant
A) Choice A
B) Choice B
C) Choice C
D) Choice D

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A scatter graph is used to test the assumption that the relationship between cost and activity level is ________. Question 8Select one: a. unpredictable b. curvilinear c. linear d. cyclical
2. The variable cost per unit of activity increases as activity increases.⦁ True⦁ False
When the activity level declines within the relevant range, what should happen with respect to the following? Fixed cost per unit Variable cost per unit A) No change B) Increase C) Increase D) No change Option B O Option C Option A O Option D Increase Increase No Change No Change
When the level of activity decreases, variable costs will:A - increase per unit.B - increase in total.C- decrease in total.D- decrease per unit
Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the same
Fixed costs are costs that: A) Change in total with changes in the level of activity B) Remain constant per unit with changes in the level of activity C) Remain constant in total regardless of changes in the level of activity D) Vary inversely with changes in the level of activity
When the level of activity decreases, variable cost will increase or decrease ?
Within the relevant range, as volume of activity increases a. Total fixed costs remain the sameb. Fixed cost per unit decreasesc. Variable cost per unit remains the samed.Total variable costs increasese. all of the above
In the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?
As the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effect
7. Which of the following is the best definition of a variable cost? A. A variable cost is one which is directly traceable to an activity of the business for which the cost will be used. B. A variable cost is one which is associated with goods or services purchased, or produced, for sale to customers. C. A variable cost is one which changes with changes in the level of activity, over a defined period of time. D. A variable cost is one which is spread over a number of activities of the business for which costs are to be determined.