Which of the following statements is NOT true about costs per unit within the relevant range? Question 7 options: Fixed costs decrease in proportion to increases in volume. Mixed costs decrease but not in direct proportion to increases in volume. Variable costs stay constant with changes in volume. Curvilinear costs stay constant with changes in volume.

Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

Answered: Which of the following statements is…

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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Similar questions

On the costvolume - profit graph which of the following would result into a decrease in the breakeven point (Assuming other factors remain unchanged )? a. Decrease in number of units sold b.Decrease in selling price per unit c. Increase in fixed costs d. Decrease in variable cost per unit e. None of the given answers
Variable costs and fixed costs can best be described by which of the following when production levels decrease? Total fixed costs decrease, but fixed costs per unit stay constant. Fixed costs per unit stay constant, but variable costs per unit decrease. Fixed costs per unit increase, but variable costs per unit stay constant. Total variable costs stay constant , but variable costs per unit decrease .
15. If the total contribution margin increases and fixed costs do not change, then net income can be expected to a. decrease by an equal amount. b. increase by an amount equal to the increase in contribution margin times the CM ratio. c. increase by an equal amount. d. none of these.
5. Which of the following statements is correct: A. total fixed cost remain constant while variable cost as total increases as level of activities decreases. B. fixed cost per unit and total variable costs increases as level of activities increases. C. variable cost per unit and total fixed cost remain constant as level of activities increases. D. fixed cost per unit remain constant and variable cost per unit decreases as level of activities decreases. W Pe
Break-even analysis assumes over the relevant range that Group of answer choices total variable costs are linear. fixed costs per unit are constant. total variable costs are nonlinear. total revenue is nonlinear.
Which of the following is the difference between variable costs and fixed costs? (CMA adapted) Multiple Choice Variable costs per unit are fixed and fixed costs per unit are variable, over the relevant range. Variable costs per unit fluctuate and fixed costs per unit remain constant. Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change. Variable costs per unit change in varying increments, while fixed costs per unit change in equal units.
3. The result of the fixed expenses divided by the unit contribution margin refers to the: * Margin of safety Contribution margin ratio Break-even point in unit sales Break-even point in dollar sales None of the above 4. Which of the following statements is correct concerning the variable expenses per unit within the relevant range? * The variable expenses per unit remain constant as the activity changes The variable expenses per unit increase as the activity increases The variable expenses per unit decrease as the activity increases The variable expenses per unit can O increase or decrease as the activity changes
As the level of activity increases, how will a mixed cost in total and per unit behave? A) B) (C) D) E) In Total Increase Increase Increase Decrease Decrease Multiple Choice Choice A Choice B Choice C Choice D Per Unit Decrease Increase No effect Increase No effect
Holding other factors constant, a company's contribution margin per unit will increase with: a. All answers given are NOT correct. O b. any increase in quantity sold. С. any increase in variable cost per unit O d. any decrease in the selling price per unit e. increase in its total fixed costs
Within a relevant range, fixed costs per unit: Group of answer choices Decrease as the level of activity decreases. Decrease as the level of activity increases. Increase as the level of activity increases. Remain the same as the level of activity increases.
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs can be divided into variable and fixed components O b. Costs are nonlinear Fixed cost per unit is not constant О с. O d. Sales mix of products sold does not change e. Selling price per unit does not change with volume O O 0 O O

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SEE MORE TEXTBOOKS

	Fixed costs decrease in proportion to increases in volume.
	Mixed costs decrease but not in direct proportion to increases in volume.
	Variable costs stay constant with changes in volume.
	Curvilinear costs stay constant with changes in volume.