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 relevant range. 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 and fixed cost per unit increases.

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 relevant range. 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 and fixed cost per unit increases.

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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Fixed costs are costs that: A) Change in total with changes in the level of activity B) Remain constant per unit with changes in the level of activity C) Remain constant in total regardless of changes in the level of activity D) Vary inversely with changes in the level of activity
When the level of activity decreases, variable cost will increase or decrease ?
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
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 .
Within the relevant range, as volume of activity increases a. Total fixed costs remain the sameb. Fixed cost per unit decreasesc. Variable cost per unit remains the samed.Total variable costs increasese. all of the above
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.