Which of the following statements related to CVP chart is not true? O a. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. O b. To determine the variable cost per unit from a graph, the change in cost is divided by the change in units. c. O c. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. The slope of the total cost line determines the variable cost per unit. O e. None of the given answers. O f. The intercept between the total cost line on a graph and the y-axis determines variable cost.

Which of the following statements related to CVP chart is not true? O a. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. O b. To determine the variable cost per unit from a graph, the change in cost is divided by the change in units. c. O c. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. The slope of the total cost line determines the variable cost per unit. O e. None of the given answers. O f. The intercept between the total cost line on a graph and the y-axis determines variable cost.

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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Break-even is the number of units at which? a. total revenue equals price times quantity b. total revenue equals total variable cost c. total revenue equals total fixed cost d. total revenue equals total cost
PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is false. If volume increases, both total variables and total fixed costs will increase. Decrease in the level of activity will cause total variable and total fixed costs to decrease. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.
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
The break-even point is that level of activity where: Select one: O a. sales revenue eguals fixed cost. O b. variable cost equals fixed cost. Oc total contribution margin equals the sum of variable cost plus fixed cost. O d. sales revenue equals total variable.cost Oe. contribution margin equals fixed cost.
On a graph, if a horizontal axis represents units of production and the vertical axis represents total costs, the total variable costs line would be shown as a(n): Question 4 options: horizontal line. vertical line. upward sloping line. downward sloping line.
1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: a. What is the total contribution margin? b. What is the total variable expense? c. How many units were sold? d. What is the per-unit variable expense? e. What is the per-unit contribution margin? 2. Answer the following questions about breakeven analysis: a. What is the breakeven point in units? b. What is the breakeven point in sales dollars? 3. Answer the following questions about target profit analysis and safety margin: a. How many units must the company sell in order to earn a profit of $48,000? b. What is the current margin of safety in units? c. What is the margin of safety in sales dollars? d. What is the margin of safety in percentage?
A graph of which of the following types of costs would have a slope of zero? Total variable cost . Variable cost per unit. Total cost Fixed cost per unit
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue
What is happening to average costs when marginal cost is greater than average cost at a specific production level? A. Average cost is decreasing B. Average cost and marginal cost are equal C. Average cost is increasing D. Average cost is not changing A
Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs change as the production amount changes. b. Total costs are the sum of total fixed and variable costs. c. Total variable costs increase due to a rise in production level. d. Variable costs per unit tend to be constant with respect to number of units produced.
1. Which of the following formulas is used to calculate break-even units? 1. Fixed Costs - Unit Contribution Margin 2. Variable Costs Contribution Margin Percent 3. Variable Costs + Unit Contribution Margin 4. Fixed Costs + Contribution Margin Percent
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.