The high-low method: a. Calculates variable costs per unit by dividing the difference in the high and low activity levels by the high and low costs b. Assumes that the fixed portion of the mixed cost is the lowest monthly cost incurred during the period under consideration c. Allows differentiation between fixed and variable costs when dealing with mixed costs d. Combines the fixed and variable portions of a cost to determine the total cost

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: Which of the following is called minimum point of production at which total cost is recovered:

A: Total cost recovery is the point under which the entity does not make any profit or loss That is…

Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is  a) Fixed costs Fixed cost…

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: If the level of activity increases within the relevant range, which of the following will also…

A: Fixed costs are those costs which do not change as the volume of production increases or decreases.…

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: on the cost volume profit graph, the area between the total costline and the sales line before the…

Q: ed as one level item. sts. om variable manufacturing

A: Contribution income statement shows the contribution margin by deducting variable cost from sales…

Q: cost which remains constant per unit

A: Variable costs are costs that change according to the level of activity. But, variable cost per unit…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

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 the definition of a variable cost? Multiple Choice The total cost (materials, labor, and…

A: The costs incurred for the production are classified as fixed and variable components. The variable…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: 7. Which of the following is an example of a mixed cost? a) Direct labor cost b) Rent expense c) Raw…

A: Mixed cost is a cost combination of variable and fixed costs. Mixed cost accounting fixed cost and…

Q: 2) Which of the following is the type of cost calculated with a scientific and engineering approach…

A: A company will incur various costs to earn revenue. The costs can be either direct or indirect costs…

Q: Within the relevant range, A B D variable cost per unit increases as production decreases variable…

A: VARIABLE COST Variable cost are costs that changes as the Volume Changes.  Variable Cost is…

Q: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: 1. Distinguish between variable and fixed costs both on a per unit and total basis (graphs may be…

A: Distinguish between variable and fixed costs both on a per unit and total basis Variable costs are…

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: Contribution margin is the difference between total revenue and total variable costs. Select one: O…

A: The contribution margin is calculated by subtracting total variable costs from total revenue. The…

Q: . If the coefficient of correlation for machine hours is higher than the coefficient of correlation…

A: The coefficient of correlation is a measure that calculates the relationship between two variables.…

Q: Within a relevant range, costs that increase in direct proportion to volume are:   Question 9…

A: Variable costs are proportional to the level of output within a relevant range. On the other hand,…

Q: Which of the following are assumptions associated with the cost equation? Check all that apply. The…

A: Cost equation means a line or formula which shows both types of cost like fixed costs and variable…

Q: There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of…

A: Semi-variable cost includes both fixed and variable costs. In this, most of the part is fixed but…

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: Which of the following costs change in total directly and proportionately with respect to the…

A: The objective of the question is to identify the type of cost that changes in total directly and…

Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…

A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…

Q: determine the variable cost per unit and the fixed cost using the high -low method.

A: Variable Costs :- Variable costs are expenses that vary depending on the volume of goods or services…

Q: The controller of Sheridan Industries has collected the following monthly expense data for use in…

A: The high-low method is a cost analysis technique that calculates the variable and fixed components…

Q: In the cost equation TC = F + VX, “V” is best described as the:    Multiple Choice   intercept…

A: The objective of the question is to identify the correct description of 'V' in the cost equation TC…

Q: Which of the following statement about Activity Based Costing is true? a)  Costs which change with…

A: In the activity level costing the indirect cost is allocated on the basis of their activity. for…

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: CVP stands for Cost-Volume-Profit analysis. It is helpful in determining the change in the total…

Q: The high-low method used in determining costs can be used to estimate the cost queation using just…

A:

Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and…

A: Variable costs is one of the one of the component of the total cost. Variable cost is the cost which…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.