Variable costs within the relevant range for a firm are assumed: A. Not to vary per unit. B. Not to vary in total. C. To be nonlinear (i.e. not a straight line when graphed). D. To be unpredictable.

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: Cost−volume−profit analysis is NOT useful in​ ________.   A. determining the appropriate sales mix…

A: Cost volume profit analysis assesses the impact of different cost and revenue levels on the…

Q: As volume increases, which of the following statements is NOT correct? O Variable cost per unit will…

A: In accounting we see that costs are of main two types – fixed costs and variable costs. Fixed costs…

Q: Operating Leverage=Quantity×(Price per unit-Variable cost per unit)Quantity×(Price per unit-Variable…

A: Operating leverage is defined as the method that estimates the change in the profit of the company…

Q: A cost which remains constant per unit at various levels of activity is a Select one: a. mixed cost.…

A: Solution: A cost which remains constant per unit at various levels of activity is a "Variable cost".…

Q: Describe the differences in behavior of fixed costs, variable costs, semi-variable costs and step…

A: Fixed costs are fixed in nature, it doesn't vary with the change in units. The total fixed cost will…

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.