Which of the following statements is true regarding cost perequivalent unit?a. this calculation only includes variable costs.b. this measure is used to assign costs to units transferred out.c. this measure always stays the same from one month to thenext regardless of different levels of production.d. the formula to calculate this measure used total equivalentunits accounted for divided by total costs to be accounted for.e. none of the answer choices is correct.

The correct answer is:b. This measure is used to assign costs to units transferred out. Explanation…

Answered: Which of the following statements is…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

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Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...

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Write “True” if the statement is true and write “False” if the statement is false. 1. Manufacturing overhead combined with direct materials is known as conversion cost.2. A variable cost will change in total in proportion to changes in the level of activity.3. A fixed cost is constant per unit of product.4. Cost accumulation, cost allocation, and cost objects are interrelated.5. A variable cost remains constant per unit, though in total increases as activity levels increase.6. If volume increases, both total variables and total fixed costs will increase.7. Decrease in the level of activity will cause total variable and total fixed costs to decrease.8. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.9. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange.10. Cost function is an express that mathematically links costs, their behavior, and their cost driver.11. As volume…
Which TWO of the following statements concerning marginal costing are TRUE? A. Closing inventories are valued at full production cost. B. Fixed costs are treated as a period cost and are charged in full to the income statement of the accounting period in which they are incurred. O.C. Marginal cost is the cost of a unit which would be avoided if that unit were not produced. OD. Contribution is calculated as sales revenue plus all variable costs.
In describing the cost formula equation, Y = a + bX, which of the following is correct?a. “Y” is the independent variableb. “a” is the variable cost per unitc. “a” and “b” are valid for all levels of activityd. in the high-low method, “b” equals the change in cost divided by the change in activity.
Which of the following statements about CVP analysis is false? a. The CVP analysis assumes that total variable costs remain the same over a relevant range. O b. Total revenues and total costs are linear in relation to output units. OC. All of the given answers are true. O d. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. O e. Operating income calculations in CVP analysis are based on contribution margin not gross margin.
Which of the following statements about determining the breakeven point is FALSE? a) Breakeven revenues equal fixed costs divided by the variable cost per unit. b) Revenues equal fixed costs plus variable costs. c) Operating income is equal to zero. d) Contribution margin minus fixed costs is equal to zero.
In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple Choice O O O "Y" is the independent variable. "a" is the variable cost per unit. "a" and "b" are valid for all levels of activity. in the high-low method, "b" equals the change in cost divided by the change in activity.
Which of the following statements pertain to variable costing? a. This method must be used for external financial reporting. b. Fixed manufacturing overhead is attached to each unit produced. c. The income statement not does disclose a company's contribution margin. d. Variable manufacturing overhead becomes part of a unit's cost. e. None of the other answers are correct.
A cost which remains constant per unit at various levels of activity is a Select one: a. mixed cost. O b. variable cost O c. fixed cost d. None of the answers are correct e. manufacturing cost.
Using the conventional method I got the cost per unit for Product A: 54 GBP and Product B: 110 GBP and using the ABC principles I got the cost for Product A: 80 GBP and for Product B: 63 GBP. What are the causes for any differences in the cost based on obtained results?
Which of the following is not a true statement about variable costs? a. Total cost is known to change in proportion to any changes in related level of volume or activity. O b. When considering total cost behaviour, focus on fixed and variable costs. O c. A total cost that can change in proportion to changes in the number of products produced. O d. Total cost never changes in proportion to any changes in related levels of volume or activity. O e. An important cost to identify so managers can make important management decisions.
When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in Units” (or “Change in Total Cost divided by Change in Activity Level”) is used to estimate the: Fixed cost per unit Mixed cost per unit Profit per unit Indirect cost per unit Variable cost per unit Differential cost per unit Opportunity cost per unit
ANSWER ALL THE GIVEN ITEMS. Write “True” if the statement is true and write “False” if the statement is false. 2. A variable cost will change in total in proportion to changes in the level of activity.3. A fixed cost is constant per unit of product.4. Cost accumulation, cost allocation, and cost objects are interrelated.5. A variable cost remains constant per unit, though in total increases as activity levels increase.6. If volume increases, both total variables and total fixed costs will increase.7. Decrease in the level of activity will cause total variable and total fixed costs to decrease.8. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.9. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange.10. Cost function is an express that mathematically links costs, their behavior, and their cost driver.11. As volume decreases within the relevant range, variable cost per unit…

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