Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed Costs per unit remain unchanged within the relevant range C) Total fixed costs remain the same regardless of volume within the relevant range D) Variable costs per unit remain the same regardless of volume within the relevant range

Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed Costs per unit remain unchanged within the relevant range C) Total fixed costs remain the same regardless of volume within the relevant range D) Variable costs per unit remain the same regardless of volume within the relevant range

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 14MC: Which of the following statements is true regarding average fixed costs? A. Average fixed costs per...

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Within the relevant range, if there is a change in the level of the cost driver then a. Total fixed costs and total variable costs will change b. Totalfixed costs and total variable costs will remain the same C. Total fixed costs will remain the same and total variable costs will change d. Total fixed costs will change and total variable costs will remain the same.
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.
What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs C. Mixed costs D. Semi-fixed costs
Select the correct statement regarding fixed costs. A) Because they do not change, fixed costs should be ignored in decision making.B) The fixed cost per unit decreases when volume increases. C) The fixed cost per unit increases when volume increases.D) The fixed cost per unit does not change when volume decreases
Which one of the following statements is false? Multiple Choice O O O O Variable costs per unit remain the same regardless of the volume. Fixed costs per unit increase as the volume decreases. Total variable costs decrease as the volume increases. Total fixed costs remain the same regardless of volume within the relevant range. Total variable costs change with volume.
(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
Variable costs are costs that vary, in total, in direct proportion to changes in volume or level of activity. A True B False
1.) Explain the effects of an increase in the volume of activity on the following costs. (Assume volume remains within the relevant range .) a. Total variable costs. b. Variable cost per unit. Total fixed cpst . d. Fixed cost per unit. e. Total semi variable costs. f. Semi variable cost per unit .
Which of the following costs has no relationship with the level of output?a) Semi-variable costs.b) Variable costs.c) Stepped fixed costs.d) Fixed costs.
Which of the following is not a true statement about variable costs? a. Total cost is known to change in proportion to any changes in related level of volume or activity. O b. When considering total cost behaviour, focus on fixed and variable costs. O c. A total cost that can change in proportion to changes in the number of products produced. O d. Total cost never changes in proportion to any changes in related levels of volume or activity. O e. An important cost to identify so managers can make important management decisions.
Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.They will decrease as production decreases. B.They will increase as production increases. C.They will increase as production decreases. D.They will remain the same as production levels change.
Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.