Which of the following is true when referring to fixed costs? I. Fixed costs remain constant in total throughout the relevant range. II. The trend in companies today is toward greater fixed costs relative to variable costs. III. As volume increases, unit fixed cost and total fixed cost will change. IV. Fixed costs increase in total throughout the relevant range. a. II only b. All but IV c. I and II d. All but III e. None of these

Q: Company X has two products: Product A and product B. Product A has a higher selling price but a…

A: Solution Concept If a product line has high selling price but a lower contribution margin it implies…

Q: uestion 2 Which of the following occurs if a company increases its selling price per unit? (Assume…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

Q: Ch. 5 Fixed Costs/Per Unit Pleaes explain the following concept/rule and give an example:  Why do…

A: Fixed cost is a cost which is constant in the short run, it is not related to any change in the…

Q: Variable costs _______  (pick all that apply) Group of answer choices 1) in total, change in direct…

A: Variable costs are the expenditure incurred on production of goods which changes in direct…

Q: Which of the following statements accurately describes the "relevant range?" a. The operation…

A: The relevant range is production range in which fixed costs remain constant. Fixed cost is a cost…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

Q: In the CVP analysis, at the point of breakeven O a. total contribution margin minus total fixed…

A: The break even sales units are the sales where business earns no profit no loss.

Q: As the number of units produced by a manufacturer decrease O Fixed costs per unit increases O…

A: Fixed costs are costs that do not fluctuate if level of activity changes. Variable costs are costs…

Q: QUESTION 8 If Nim Com Soup, Inc.'s, variable costs per unit decrease, while selling price per unit…

A: Since, Selling price - Variable Cost  =  contribution margin

Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…

A: The contribution margin decides which product gives more profits to the company. The contribution is…

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: As production increases within the relevant range, Group of answer choices a. None of the…

A: If the level of production changes within the relevant range: Per unit variable cost remains same…

Q: Each of a company's two product lines has a different contribution margin ratio. If the company's…

A: The costs when are covered with certain amount of revenue earned, such amount is treated as break…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Answer

Q: company's total sales remain same but the sales mix shifts toward selling more of the product with…

A: Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the…

Q: revenues equal total fixed costs e given answers on margin equals total costs revenues equal total…

A: A CVP analysis is used to determine the sales volume required to achieve a specified profit level.…

Q: Select the correct statement concerning the below cost-volume-profit graph: Line E A O a. None O b.…

A: Margin of safety=Budgeted sales in dollars-Break even level in sales dollars

Q: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…

A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…

Q: Within the relevant range: a.        both total variable costs and total fixed costs will remain…

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

Q: Which of the following statements is true? I. Under the absorption costing method, a company can…

A: Absorption costing is a method of costing in which all manufacturing costs both variable and fixed…

Q: Which of the following statements about CVP analysis is true? O a. Unit selling price, unit variable…

A: Cost volume profit analysis is the methods to identify the impact on operating income due to the…

Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The break-even point is that at which: Select one: O A. The level of activity at which the business…

A: Solution:- Break-even point is the point where the total costs of a business are equal to the total…

Q: If XYZ Company sells unit outputs that exceed the breakeven point, a. there will be an increase in…

A: CVP investigation takes a goose at the impact of deals volume minor departure from prices and…

Q: Which one of the following statements about fixed costs is correct? -The average fixed cost per…

A: Fixed cost is the cost that remains constant irrespective of the level of production. A company…

Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…

Q: 16 Which costs will change with a decrease in activity within the relevant range? Select one: a.…

A: The correct answer is a. Unit fixed cost and total variable costs.Explanation:Understanding how…

Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…

A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…

Q: If Mazoon Company sells unit outputs that exceed the breakeven point there will be a profit .a total…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…

A: Option a is correct.

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.

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: Within the relevant range: Select one: O A. variable cost per unit decreases as production…

A: Within the relevant range: (B) Fixed cost increases as the production decreases. With fewer goods…

Q: Everything else remaining the same, an increase in fixed costs:  I- increases the break-even point…

A: Financial breakeven point is that breakeven point, which is based out of net present value (NPV).…

Q: The break-even point is that level of activity where:

A:

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: Holding other factors constant, a company's contribution margin per unit will increase with: O a.…

A: The contribution margin represents the portion of sales that is left after the deduction of variable…

Q: absorption costing

A: First option is wrong because net operating income does not fluctuate directly with changes in sales…

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.