Which of the following statements is NOT true about costs per unit within the relevant range? Question 7 options: Fixed costs decrease in proportion to increases in volume. Mixed costs decrease but not in direct proportion to increases in volume. Variable costs stay constant with changes in volume. Curvilinear costs stay constant with changes in volume.
Q: If total fixed costs decrease while the sale price per unit and the variable cost per unit remain…
A: Contribution margin = Sales price per unit - Variable cost per unit Therefore, there is no impact…
Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…
A: Margin of safety is the difference between the expected sales at the given profitability and the…
Q: Which of the following statements is NOT true? A) Total variable costs change with volume B) Fixed…
A: Variable Cost change with level of activity Fixed Costs per unit changes when the level of activity…
Q: Under variable costing, how is it possible to increase net operating income without increasing sales
A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as direct…
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: With respect to total fixed costs, which of the following statements is true? a They will…
A: Cost refers to the expenditure incurred by an individual or entity in process of creation of goods…
Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…
A: If Fixed cost decreases remaining constant Break even sales automatically Break even sales reduces…
Q: The breakeven point increases if: O a. the selling price per unit increases O b. the total fixed…
A: 1) D is the correct answer Because The break-even point can increase once the number of fixed prices…
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: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: Contribution margin: This is the difference between sale price and variable cost per unit. This…
Q: Which of the following formulas is used to calculate break-even units? Fixed Costs ÷ Unit…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Answer
Q: A company observed a decrease in the cost per unit. All other things being equal, which of the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: If both the fixed costs associated with a product and the variable costs (as apercentage of sales…
A: Cost: It can be defined as the total amount that is spent by a business in manufacturing a product.
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A:
Q: Cost A is a fixed cost, while B is a variable cost. During the current year, the volume of output…
A: There are two cost fixed cost and variable cost. Cost per unit depends on fixed and variable costs…
Q: ) Briefly explain the impact of each of the following scenarios on the break-even point and the…
A: Break even point is the point of sales where business earns no profit no loss.
Q: When the volume of production is higher than the volume of production at break-even point, than the…
A: Answer - Correct Option is Option C) current amount of profit
Q: Select the correct statement regarding break-even point analysis. Multiple Choice O O The break-even…
A: The break-even point is that level of the unit where the company neither incurs any gain nor any…
Q: S1: If production equals sales for the period, absorption costing and variable costing will produce…
A: Solution: S1: If production equals sales for the period, absorption costing and variable costing…
Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…
A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…
Q: Briefly explain the impact of each of the following scenarios on the break-even point and the margin…
A: The break even sales units are the sales where business earns no profit no loss during the period.
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…
A: Fixed costs are those costs which do not change with change in level of activity. For example,…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: Contribution margin is the difference of sales price per unit and variable cost per unit.
Q: Give an example of how, under absorption costing, operating income could fall even though the unit…
A: Definition: Absorption Costing: The absorption costing is a method used to allocate the fixed…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…
A: Fixed cost in total remains constant. They will not change by change in production.
Q: If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in…
A: Lets understand the basics. Variable cost ratio is a ratio which indicates the variable cost in…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)
Q: Which one of the following is not an assumption of CVP analysis? The behavior of costs and…
A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…
Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…
A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…
Q: If the number of units produced decreases, which of the following is true? answer choices…
A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: Break even point is total fixed cost divided by contribution margin per unit. So break-even point…
Q: When the level of output increases within the relevant range, _____. a.fixed cost per unit does…
A: Fixed cost means the cost which do not change with the level of output but variable cost will vary…
Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…
A: The bteak even sales are the sales where business earns no profit no loss during the period.
Q: On the cost-volume-profit graph, which of the following would result into a decrease in the…
A: CVP analysis: This analysis helps to evaluate how the changes made in cost and volume do affect the…
Q: The effect on contribution margin ratio (CMR) and BEP of increasing sales price assuming it will not…
A: Introduction:- Discussion of the effect on contribution margin ratio (CMR) and BEP of increasing…
Q: 4. Which of the following statements is correct? a. Gross margin and contribution margin are the…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: 3. When the contribution margin per unit increases assuming all other factors remain constant. The…
A: The formula for Contribution margin per unit is : =Sales Revenue per unit - Variable Cost per unit…
Q: When should a segment be dropped?
A: Any Segment will be dropped only when there is increase in the Net operating income after the…
Q: If unit costs remain unchanged and sales volume and sales price per unit both increase from the…
A: Operating profit is the total income from operations before taxes. The revenue and the money spent…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point where unit sold gives no profit or loss to the firm. Beyond Break Even…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: Break Even Point is a point at which firm incurred no loss and earned No Profit. Break Even Point…
Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: On the cost-volume-profit graph, which of the following would result into an increase in the…
A: The Break-even point is the point where all the sales generated by the company are equal to the cost…
Q: The breakeven point decreases if: a. the variable cost per unit increases b. the contribution margin…
A: The break even is a scenario whereby the revenues are equal to the costs. This simply means that the…
Question 7 options:
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Fixed costs decrease in proportion to increases in volume.
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Mixed costs decrease but not in direct proportion to increases in volume.
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Variable costs stay constant with changes in volume.
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Curvilinear costs stay constant with changes in volume.
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- When should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in fixed cost D. only when the decrease in total contribution margin is less than the decrease in variable costWhich 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.As volume increases, which of the following statements is NOT correct? Variable cost per unit will remain the same. Total variable costs will increase. Total fixed cost will remain the same. Average cost per unit will increase. O
- How do costs behave when there is a change in volume?a) ______ increases or decreases in total in direct proportion to increases or decreases in sales volume. b) ______ remains the same in total, regardless of change in sales. c) ______ have both a variable and fixed component. d) Answer the following regarding the high-low method:i) What is the formula for determining the variable costs when using the high low method:ii) Given the following information for the high and low levels, what is the variable cost per unit and the total fixed costs? iii) Based on the information in part ii), what is the relevant range?In MyAccountingLab, complete Try It! 21-1 and S21-1 through S21-3.LO2. What is contribution margin, and how is it used to compute operating income?a) What is the contribution margin if net sales revenue is $100,000 and variable costs are $40,000? b) Based on the information in part a), what is the contribution margin ratio?In MyAccountingLab, complete Try It! 21-2 and S21-4 and…CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assumptions, as volume decreases total Group of answer choices fixed costs decrease. variable costs remain constant. costs decrease. costs remain constant.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
- If the number of units produced decreases, which of the following is true? answer choices Variable cost per unit will increase. Fixed cost per unit will increase. Variable cost per unit will decrease. Fixed cost per unit will decrease.What is characteristic of variable costs within the relevant range? A. Decrease in total as as output increases B. Stay constant in total as output increases C. Decrease on a per-unit basis as output increases D. Stay constant on a per-unit basis as output changesWith regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph assumes that volume is the only factor affecting total cost. b. The CVP graph assumes that fixed expenses are constant in total within the relevant range. c. The CVP graph assumes that selling prices do not change. d. The CVP graph assumes that variable costs go down as volume goes up.
- Select the correct statement regarding fixed costs. They do not change, because fixed costs should be ignored in decision making. The fixed cost per unit increases when volume increases. The fixed cost per unit decreases when volume increases. The fixed cost per unit does not change when volume decreases.Which of the following is true of fixed and variable costs? Volume changes will not change the relationship between fixed and variable costs. Fixed costs are fixed in total, but vary per unit; variable costs vary in total, but are fixed per unit. As sales increase, the contribution margin percentage increases. O The relationship between sales, variable costs, and the contribution margin does not change when the sales price per unit changes. The contribution margin is what remains after fixed costs have been subtracted from total sales.If total fixed costs decrease while the sale price per unit and the variable cost per unit remain constant, the: a. contribution margin increases b. breakeven point increases c. contribution margin decreases d. breakeven point decreases