Which of the following statements describes variable costs?A. Costs that vary on a per-unit basis as the level of activity changesB. Costs that vary in total in direct proportion to changes in the level of activityC. Costs that remain the same in total dollar amount as the level of activity changesD. Costs that vary on a per-unit basis, but remain the same in total as the level of activity changes

Q: Which of the following statements is TRUE? O A. Variable costs per unit decrease as production…

A: Total Variable cost are the cost which changes with change in production volume . Fixed cost do not…

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…

Q: 6. What are costs that vary in proportions to changes in the activity base?

A: In cost accounting, different types of costs are incurred and accounted for. Some costs do not…

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: Within the relevant range of activity fixed costs remain constant in total costs and activity can be…

A: A certain activity level that is limited by a minimum and maximum quantity is referred to as the…

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: 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: Costs that vary in proportion to volume changes but not directly are considered

A: Mixed Costs are the costs in which some of its component is fixed, i.e. it doesn't change with the…

Q: On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the…

A: Solution:- Cost-volume-profit graph is the graph which measures the loss, profit and break-even…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: Contribution margin is the difference between total revenue and total variable costs. Select one: O…

A: The contribution margin is calculated by subtracting total variable costs from total revenue. The…

Q: Within a relevant range, costs that increase in direct proportion to volume are:   Question 9…

A: Variable costs are proportional to the level of output within a relevant range. On the other hand,…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: Variable costs per unit are affected by an increase or decrease in activity. True or False True…

A: Variable Cost is that type of cost which is associated with the number of units produced or volume…

Q: Costs that change in total but not proportionately with changes in the activity level are mixed…

A: The costs incurred during the production process can be classified as fixed, variable and mixed…

Q: Which of the following costs change in total directly and proportionately with respect to the…

A: The objective of the question is to identify the type of cost that changes in total directly and…

Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

Q: A cost increases or decreases in intervals as activity changes.     a. historical cost b. step cost…

A: Introduction: Fixed costs: The costs which are fixed in nature , it won't varies according to the…

Q: iable costs change in direct proportion to a change in the activity level. True or False?

A: There are two types of one is fixed cost and other is variable cost and both are part of the total…

Q: When using the high-low method to estimate costs, the formula “Change in Cost divided by Change in…

A: The objective of the question is to identify what cost component is estimated using the formula…

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

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…