ANSWER Q-15The learning curve concept suggests:(a) Costs increase with production(b) Fixed costs vary with volume(c) Quality decreases over time(d) Unit costs decrease with experience

The learning curve concept is a critical principle in operations management and production…

Answered: Q-15 The learning curve concept…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 12MC: Which statement is correct? A. Activity-based cost systems are less costly than traditional cost...

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Which statement is correct? A. Activity-based cost systems are less costly than traditional cost systems. B. Activity-based cost systems are easier to implement than traditional cost systems. C. Activity-based cost systems are more accurate than traditional cost systems. D. Activity-based cost systems provide the same data as traditional cost systems.
A scatter graph is used to test the assumption that the relationship between cost and activity level is __________________________. A. curvilinear B. cyclical C. unpredictable D. linear
When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unit
Fixed costs are expenses that ______________________________ . A. vary in response to changes in activity level B. remain constant on a per-unit basis C. increase on a per-unit basis as activity increases D. remain constant as activity changes
A scatter graph is used to test the assumption that the relationship between cost and activity level is ________. Question 8Select one: a. unpredictable b. curvilinear c. linear d. cyclical
Relevant range is the activity that affects the increase or decrease of costs Select one: O True O False Previo m Jump to... Return to: General +
In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept of the cost equation. total costs that do not vary with changes in the activity level. activity level used to estimate the dependent variable. slope of the cost equation.
_____Identifying the relationship between the activity and the costs is a key step in which of the following cost estimation methods? a) Scattergraph. b) High-low method. c) Linear regression. d) Account analysis.
When the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.
When output volume increases, do variable costs per unit increase, decrease, or stay the same within the relevant range of activity? Explain.
Prblm
variable costs change in direct proportion to a change in the activity level. True or False?

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Q-15 The learning curve concept suggests: (a) Costs increase with production (b) Fixed costs vary with volume (c) Quality decreases over time (d) Unit costs decrease with experience