When the units manufactured increases, the most significant change in average unit cost will be refiected as a An increase in the non-variable element CA decrease in the non-variable element D. A decrease in the variable element d. An increase in the semi-variable element

When the units manufactured increases, the most significant change in average unit cost will be refiected as a An increase in the non-variable element CA decrease in the non-variable element D. A decrease in the variable element d. An increase in the semi-variable element

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

When the units manufactured increases, the most significant change in average unit cost will be refiected as
a An increase in the non-variable element
CA decrease in the non-variable element
b. A decrease in the variable element
d. An increase in the semi-variable element

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Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the same
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PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange. Cost function is an express that mathematically links costs, their behavior, and their cost driver. As volume decreases within the relevant range, variable cost per unit remains the same andfixed cost per unit increases.