hich of the following statements related to CVP chart is not true? To determine the variable cost per unit from a graph, the change in cost is divided by the change in units D a. O b. The scatter graph method is a way to estimate the cost behavior by graphically connecting the two cost identified with the highest and lowest volume levels. O C. The slope of the total cost line determines the variable cost per unit. O d. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per earlier and subtracting that from the total cost for that level of volume. The intercept between the total cost line on a graph and the y-axis determines the fixed cost. e

hich of the following statements related to CVP chart is not true? To determine the variable cost per unit from a graph, the change in cost is divided by the change in units D a. O b. The scatter graph method is a way to estimate the cost behavior by graphically connecting the two cost identified with the highest and lowest volume levels. O C. The slope of the total cost line determines the variable cost per unit. O d. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per earlier and subtracting that from the total cost for that level of volume. The intercept between the total cost line on a graph and the y-axis determines the fixed cost. e

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

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

Which of the following statements related to CVP chart is not true?
O a.
To determine the variable cost per unit from a graph, the change in cost is divided by the change in units.
O b. The scatter graph method is a way to estimate the cost behavior by graphically connecting the two cost amounts
identified with the highest and lowest volume levels.
O c.
The slope of the total cost line determines the variable cost per unit.
O d. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out
earlier and subtracting that from the total cost for that level of volume.
e.
The intercept between the total cost line on a graph and the y-axis determines the fixed cost.
f. None of the given answers.

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