Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa. Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run. To determine: The behavior of fixed cost and variable cost with the help of diagram.

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Answer 1

Question

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

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Answer 2

Question

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

Answer 6

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

Answer 7

Chapter 5, Problem 5.2BE

To determine

Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly proportional to the level of output produced, it increase with increase in output and vice versa.

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

To determine: The behavior of fixed cost and variable cost with the help of diagram.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - (a) What is cost behavior analysis? (b) Why is...Ch. 5 - (a) Scott Winter asks your help in understanding...Ch. 5 - Contrast the effects of changes in the activity...Ch. 5 - J. P. Alexander claims that the relevant range...Ch. 5 - The relevant range is indispensable in cost...Ch. 5 - Prob. 6Q Ch. 5 - How should mixed costs be classified in CVP...Ch. 5 - At the high and low levels of activity during the...Ch. 5 - "Cost-volume-profit (CVP) analysis is based...Ch. 5 - Faye Dunn defines contribution margin as the...

Solution Summary: The author analyzes the behavior of fixed cost and variable cost with the help of diagrams.

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