AN INCREASE IN TOTAL VARIABLE COST USUALLY INDICATES A. THE COST-DRIVER ACTIVITY LEVEL IS DECREASING B. THE COST-DRIVER ACTIVITY LEVEL IS INCREASING C. VARIABLE COST PER UNIT IS DECREASING D. VARIABLE COST PER UNIT IS INCREASING
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- When the level of activity decreases, variable costs will:A - increase per unit.B - increase in total.C- decrease in total.D- decrease per unitWithin 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 aboveShow 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
- When the total fixed costs decrease, the contribution margin per unit ________. A. increases B. decreases C. decreases proportionately D. remains the sameWhat is characteristic of variable costs within the relevant range? A. Decrease in total as as output increases B. Stay constant in total as output increases C. Decrease on a per-unit basis as output increases D. Stay constant on a per-unit basis as output changesWhich of the following cost behavior assumptions is true? (You may select morethan one answer.)a. Variable costs are constant if expressed on a per unit basis.b. Total variable costs increase as the level of activity increases.c. The average fixed cost per unit increases as the level of activity increases.d. Total fixed costs decrease as the level of activity decreases
- When the level of output increases within the relevant range, _____. a.fixed cost per unit does not change, but the variable cost per unit decreases b.both fixed cost per unit and variable cost per unit do not change c.both fixed cost per unit and variable cost per unit decrease d.fixed cost per unit decreases, but the variable cost per unit does not changeWhich one of the following statement best describe the unit variable cost: Select one: O a. Remains constant in the relevant range O b. Increase with the increase of activities O c. Increase with the decrease of activities O d. Decrease with the increase of activitiesAs volume increases, which of the following statements is NOT correct? Variable cost per unit will remain the same. Total variable costs will increase. Total fixed cost will remain the same. Average cost per unit will increase. O
- As the level of activity increases, how will a mixed cost behave? a. Increase in total but would decrease per unit b. Increase in total and per unit c. Increase per unit but would increase in total d. None of these e. Decrease in total and per unitFixed cost per unit ______ A. Can be estimated by the high - low method. B. Remains the same when the level of activity changes. C. Are represented by the slope of the total cost line. D. All of the above answers are correct.Which of the following is true of a variable cost? Total variable cost remains constant with changes in the number of goods sold. Unit variable cost decreases with an increase in production. Unit variable cost remains constant with changes in production. Total variable cost decreases with an increase in the number of goods sold.