Which of the following statements regarding graphs of fixed and variable costs is true?  (a) Variable costs can be represented by a straight line where costs are the same for each data point. (b) Fixed costs can be represented by a straight line starting at the origin and continuing through each data point. (c) Fixed costs are zero when production is equal to zero. (d) Variable costs are zero when production is equal to zero. (e) Fixed and Variable costs are curvilinear form above zero on the “Y” axis.

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A: CVP Chart:   Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…

Q: CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable.…

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Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is  a) Fixed costs Fixed cost…

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A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

Q: If the level of activity increases within the relevant range, which of the following will also…

A: Fixed costs are those costs which do not change as the volume of production increases or decreases.…

Q: Fixed costs per unit _______. .1. can be estimated by the high-low method 2. remains the same when…

A: The high-low technique tries to distinguish between fixed and variable costs. The highest level of…

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

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A: on the cost volume profit graph, the area between the total costline and the sales line before the…

Q: On a graph, the Total Variable costs line appears to be horizontal in nature. True False

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Q: The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding…

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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: Which of the following statements is true about fixed and variable costs? * Both costs are constant…

A: Solution:- When sales units are increases or decreases the total sales also increase or decreases…

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

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: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: A total cost equation can be used to predict future costs for various activity levels. Write the…

A: Concept The total cost is the sum of variable cost and fixed cost incurred For example if variable…

Q: 7. Which of the following is an example of a mixed cost? a) Direct labor cost b) Rent expense c) Raw…

A: Mixed cost is a cost combination of variable and fixed costs. Mixed cost accounting fixed cost and…

Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…

A: Fixed cost will change and total cost will remain the same.

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A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: Which of the following statements is (are) true? (A) A price standard is the price that should be…

A: Standard costing refers to the method of costing used for the computation of expenses in the process…

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: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…

A: Variable cost is the cost incurred during the production of units which will be directly…

Q: Which of the following are assumptions associated with the cost equation? Check all that apply. The…

A: Cost equation means a line or formula which shows both types of cost like fixed costs and variable…

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: a Total fed costs and total variable costs will change b. Total fxed costs and total variable costs…

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Q: What is meant by an activity base when dealing with variable costs? Give several examples of…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: The “fixed cost per unit function” may also be described as: a.an asymptote b.the total cost line…

A: Introduction:- Fixed costs, also known as indirect costs or overhead costs, are corporate expenses…

Q: In the cost equation TC = F + VX, “V” is best described as the:    Multiple Choice   intercept…

A: The objective of the question is to identify the correct description of 'V' in the cost equation TC…

Q: Why are the terms direct costs and indirect costs independent of the terms fixed costs and variable…

A: The terms "direct costs" and "indirect costs" are independent of the terms "fixed costs" and…

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

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: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…

A: The question is multiple choice question.The question is related to cost volume profit analysis.…

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: RUE OR FALSE. 1. If volume increases, all costs will increase. 2. Changes in the level of activity…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: 2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED…

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Q: The computation for the shutdown point is A. Avoidable fixed costs ÷ unit contribution margin B.…

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Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

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Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

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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.