Question 5? QUESTION 5Within the relevant range, variable costs can be expected to:vary in total in direct proportion to changes in the activity level.increase on a per unit basis as the activity level decreases.remain constant in total as the activity level changes.increase on a per unit basis as the activity level increases.

The question is based on the concept of Cost Accounting. Variable cost is the cost that remains same…

Answered: Within the relevant range, variable…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9MC: Fixed costs are expenses that ______________________________ . A. vary in response to changes in...

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Ch. 5 Fixed Costs/Per Unit Pleaes explain the following concept/rule and give an example: Why do fixed costs on a per unit bases decrease with an increase in activity level? Also what is the difference between a fixed cost and a per-unit fixed cost?
Question 8 Which costs will change with a decrease in activity within the relevant range? Unit variable cost and unit fixed cost. O Unit fixed cost and total fixed cost. Unit fixed costs and total variable cost. O Total fixed costs and total variable cost.
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
Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain constant as activity changes C.Decrease on a per unit basis as activity increases D.Remain constant on a per unit basis as activity changes
Variable costs are costs that: a) Vary inversely proportional with changes in activity b) Remain constant as activity changes c) Decrease on a per unit basis as activity increases d) Remain constant on a per unit basis as activity changes
Which one of the following statement best describe the unit variable cost: Select one: O a. Remains constant in the relevant range O b. Increase with the increase of activities O c. Increase with the decrease of activities O d. Decrease with the increase of activities
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.
What is characteristic of variable costs within the relevant range? A. Decrease in total as as output increases B. Stay constant in total as output increases C. Decrease on a per-unit basis as output increases D. Stay constant on a per-unit basis as output changes
When the level of activity increases, total fixed costs a. decrease. b. remain the same. c. increase. d. change, but the direction depends on the specific situation.
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
When the level of activity decreases, variable cost will increase or decrease ?
Variable costs are costs that: vary inversely proportional with changes in activity Remain constant as activity changes Decrease on a per unit basis as activity increases Remain constant on a per unit basis as activity changes

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