If a firm changes its activity levelall costs should changevariable costs should changeO proportionally with the change in thatactivity levelcosts will not be affectedonly fixed costs will be affectedNone of the above The "total units accounted for" equalsunits in *Units in beginning work in process -units transferred outUnits in beginning work in process +ending work in processUnits in ending work in process + unitscompletedUnits in ending work in process -units started into productionNone of the above

The answers for the multiple choice questions and relevant explanation are presented hereunder :…

If a firm changes its activity level * all costs should change variable costs should change proportionally with the change in that activity level costs will not be affected O only fixed costs will be affected

If a firm changes its activity level * all costs should change variable costs should change proportionally with the change in that activity level costs will not be affected O only fixed costs will be affected

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

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.

Question

If a firm changes its activity level
all costs should change
variable costs should change
O proportionally with the change in that
activity level
costs will not be affected
only fixed costs will be affected
None of the above

The "total units accounted for" equals
units in *
Units in beginning work in process -
units transferred out
Units in beginning work in process +
ending work in process
Units in ending work in process + units
completed
Units in ending work in process -
units started into production
None of the above

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