Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of activity changes. Are represented by the slope of the total cost line. All of the above answers are correct.

Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of activity changes. Are represented by the slope of the total cost line. All of the above answers are correct.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8CDQ: Which of the following graphs best illustrates fixed costs per unit as the activity base changes?

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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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Fixed costs per unit
Can be estimated by the high-low method.
Remains the same when the level of activity changes.
Are represented by the slope of the total cost line.
All of the above answers are correct.

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Which of the following graphs best illustrates fixed costs per unit as the activity base changes?
Fixed 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.
Fixed costs per unit _______. .1. can be estimated by the high-low method 2. remains the same when the level of activity changes 3. are represented by the slope of the total cost line. 4. all of the above
In describing the cost formula equation, Y = a + bX, which of the following is correct?a. “Y” is the independent variableb. “a” is the variable cost per unitc. “a” and “b” are valid for all levels of activityd. in the high-low method, “b” equals the change in cost divided by the change in activity.
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In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple Choice O O O "Y" is the independent variable. "a" is the variable cost per unit. "a" and "b" are valid for all levels of activity. in the high-low method, "b" equals the change in cost divided by the change in activity.
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Which of the following best describes a variable cost? A cost that: a. Represents a fixed proportion of total costs b. Has a direct relationship with outputc. Is sometimes also known as an indirect cos d. Falls on average, as output increases.
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