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

Q: a) What effect does an increase in volume on each of the following: 1) Unit fixed costs 2) Unit…

A: Fixed Cost In a simple term fixed cost which describe as cost which was incurred in the entity which…

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: 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: 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: Costs that vary in proportion to volume changes but not directly are considered

A: Mixed Costs are the costs in which some of its component is fixed, i.e. it doesn't change with the…

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: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…

A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…

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: 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: 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: In economics, a fixed cost is a cost that O does not vary with the level of output. O goes down as…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

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: 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: 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…

Q: When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in…

A: The objective of the question is to identify what cost component is estimated using the formula…

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: In incremental analysis, the only costs to be considered are O relevant costs. sunk costs. O…

A: The incremental analysis uses those items that are relevant in aiding business decisions. These…

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…