1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately with activity, decreases by a fixxed amount, decreases proportionately with activity, remains constant? 2. Variable cost are costs that, Vary inversely with changes in activity, increase on per-unit basis as activity increases, decrease on a per unit basis as activity increases, remains constant as activity changes, vary directly with changes in activity?

1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately with activity, decreases by a fixxed amount, decreases proportionately with activity, remains constant? 2. Variable cost are costs that, Vary inversely with changes in activity, increase on per-unit basis as activity increases, decrease on a per unit basis as activity increases, remains constant as activity changes, vary directly with changes in activity?

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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Fixed costs are expenses that ______________________________ . A. vary in response to changes in activity level B. remain constant on a per-unit basis C. increase on a per-unit basis as activity increases D. remain constant 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
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: 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
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.
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
In the fixed cost per unit does the it increase as activity decreases and will decrease as activity increases?
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.
A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity B. varies inversely in total with changes in the level of activity O C. varies in total with changes in the level of activity O D. remains constant in total with changes in the level of activity
(a) Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit variable cost remain constant regardless of the level of activity a. Both statements are true b. Both statements are false c. Statement A is true and statement B is false d. Statement A is false and statement B is true
In describing the cost formula equation Y = a + bX, which of the following statements is NOT correct? (A As "X" increases "Y" increases. (B) "X" is the level of activity. In the high-low method, "b" equals change in activity divided by change in costs. "a" is the fixed component.
Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in direct proportion to the increase in activity d. increases, but at a slower rate than the level of activity.