Describe the behavior of fixed and variable costs as activity levels change. Use graphs to supplement your descriptions. Identify the scenario involving fixed costs that can be misleading for decision making.

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: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: Decisions where relevant cost analysis might be used effective is Keep or replace decision. Explain…

A: Relevant costs are those costs that can be used while making a decision on whether to keep or…

Q: rovide another example of a cost center and explain why you choose that example.

A: Cost center is a department or function within an organization that does not directly add to profit…

Q: n a decision analysis situation, which one of the following costs is generally not relevant to the…

A: Decision making is the process used to choose one of the various available alternatives. Examples of…

Q: 4.A scatter graph is used to test the assumption that the relationship between cost and…

A: Explanation and answer is given below,

Q: In the cost equation TC = F + VX, “V” is best described as the:    Multiple Choice   intercept…

A: The objective of the question is to identify the correct description of 'V' in the cost equation TC…

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: Define the term accelerated cost recovery system (AC RS)?

A: The AC RS is a method of depreciation. It is used for depreciating the property for tax purposes

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: iable costs change in direct proportion to a change in the activity level. True or False?

A: There are two types of one is fixed cost and other is variable cost and both are part of the total…

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.