Within the relevant range of activity, variable cost per unit will: O a increase in proportion with the level of activity Ob. remain constant Oc vary inversely with the level of activity O d. none of these
Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…
A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…
Q: Variable cost varies _____ with output. a. Disproportionately b. Proportionately c. More than…
A: The different costs of production are classified as fixed costs and variable costs. The fixed cost…
Q: What is the effect of an increase in activity on the following items? a. Total variable costs b.…
A: a) An increase in activity would increase the total variable costs proportionately. Variable cost is…
Q: The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A.…
A: There are two type of costs being incurred in business. One is fixed costs and other is variable…
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…
A: on the cost volume profit graph, the area between the total costline and the sales line before the…
Q: 5. Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: ariable costs) / Sales b. (Fixed costs + target income) / Sales c. (Fixed costs + target income) /…
A: The answer to the multiple choice questions are give below.
Q: Which of the following best describes a fixed cost? a. Cost representing a fixed proportion of…
A: Fixed Cost: It is a cost that does not change with the change in the level of output. It is the…
Q: What is the effect of an increase in activity on total variable costs,variable cost per unit of…
A: Total cost refers to the cost or amount incurred by the company in production of its goods and…
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: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…
A: Fixed cost will change and total cost will remain the same.
Q: When activity volume decreases in the short term, which of the following is true? (hint: some costs…
A: VC per unit remains constant as the total VC changes with direct proportion to the volume of output.…
Q: 1. The total variable costs charged to expense for the year, assuming that NUBD uses variable…
A: Solution:- 1)Calculation of total variable costs charged to expense for the year, assuming that NUBD…
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: A fixed cost is a cost which O A. remains constant per unit with changes in the level of activity O…
A: Fixed cost is not affected by the changes in the level of activity.
Q: In the standard cost formula Y = a + bX, what does the "Y" represent? total cost variable cost per…
A: Variable cost: Variable cost refers to that cost which gets increased with the increase in the…
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: Which of the following statements about CVP analysis is true? O a. Unit selling price, unit variable…
A: Cost volume profit analysis is the methods to identify the impact on operating income due to the…
Q: At the breakeven point Select one: O a. Sales will be equal to variable costs plus fixed costs b.…
A: Formula: Break even point in units = Fixed costs / contribution margin Contribution margin means…
Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
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: A fixed cost total rises or falls in approximate proportion to changes in activity base. Select one:…
A: The costs incurred can be defined as fixed Cost and variable cost
Q: 1. Total variable cost is affected by changes in activity and per unit variable cost is constant
A: Total Cost Consists of Two Components which is Fixed cost and Variable cost. The Behavior of these…
Q: Required: 1. Determine the total variable costs and the total fixed costs for the current year.…
A:
Q: In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False
A: Cost behavior formula = a+ b*x
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is the margin of profits of any enterprise which is essentially a function of…
Q: The cost that vary accordingly to the volume of output is O a. Variable cost O b. Both fixed and…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: The break-even point is that level of activity where: Select one: O a. profit equals to zero. O b.…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution Margin is sales less variable costs. Contribution Margin ratio = Contribution margin /…
Q: On the cost-volume-profit graph, the area between the total cost line and the sales line after the…
A: CVP analysis helps in determining the effect of variation in the costs on the profitability of an…
Q: Which of the following statements about CVP analysis is true? O a. Operating income calculations in…
A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his…
Q: Variable costs are costs that: Select one: a. Neither of the above b. vary in total directly and…
A: Variable costs is one of the one of the component of the total cost. Variable cost is the cost which…
Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…
A: Hi student SInce there are multiple questions, we will answer only first question. Since first…
Q: Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per…
A: Intercept is the total fixed cost and slope of cost function is the variable cost per unit. And the…
Q: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…
A: Variable costs: Variable costs are those costs that change in proportion to change in the production…
Q: Total cost is a combination of fixed and variable costs. The algebraic equation, where T =…
A: Provide the algebraic equation for total cost.
Q: Explain the impact of an increase in the level of activity (or cost driver) on (a) total variable…
A: (a)
Q: Variable costs vary in total as activity varies. vary on a per unit basis as activity varies. O are…
A: Total costs are comprised of two costs: (i) Fixed costs and (ii) Variable costs. Fixed costs are…
Q: In describing the cost formula equation Y = a + bX, which of the following statements is NOT…
A: Cost formula equation shows the combination or mixture of fixed costs and variable costs for…
Q: ?Which of the following statements about CVP analysis is true .Operating income calculations in CVP…
A: Cost - Volume Profit Analysis ( CVP ) is used to identify how the changes in cost and volumes effect…
Q: Which of the following defines variable cost behavior? a. Total cost reaction to increase in…
A: The variable cost is the cost that affects in the direct proportion to the units of activity in…
Q: Variable costs are the costs remain constant in 'total" amount over a wide range of activity for a…
A: Cost refers to the amount spend on the production of goods or services. This is the amount seller…
Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…
A: In the question we are required to identify the effect of increase in activity on Total Variable…
Q: In the fixed cost per unit does the it increase as activity decreases and will decrease as activity…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: A fixed cost remains constant in total and on a per unit basis at various levels of activity. Ture O…
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- 1. At the break-even point mon a tot misb a. Contribution margin = fixed costs b. Variable costs = fixed costs c. Sales contribution margin d. Contribution margin = 0 when erf 99Cost Activity (units)56 4 62 5 80 7 72 7 88 9 94 10 1. Calculate the fixed cost per period2. Calculate the variable cost per unit3. Write the linear equationIf the total fixed costs Omr 75000, variable cost per unit Omr 15 and contribution margin per units Omr 25. The Breakeven point B.E.P (units) is:
- The breakeven point increases if: O a. the contribution margin per unit increases O b. none of the given answers of O c. the total fixed costs decrease O d. the selling price per unit decreases O e. the variable cost per unit decreases IOUS PAGE estytion ype here to search W 米 12 トト #3 3 %24 4 & 5 6. 7 8 E OP D 41*17.3.21 A joint-cost function is defined implicitly by the equation c+ vc = 90 + 9A9+96 where c denotes the total cost (in dollars) for producing qa units of product A and qg units of product B. (a) If qa = 4 and qB = 4, find the corresponding value of c. (b) Determine the marginal costs with respect to ga and qg when qa = 4 and qe = 4. (a) If qA = 4 and qg = 4, the corresponding value of c is (Simplify your answer.)Given the mixed cost function y = $6.50x + $3,000. What does the $6.50 represent? a.Total cost per unit of the cost driver b.The fixed cost per unit c.The slope of the cost function d.Total fixed costs
- Which one of the following statement best describe the unit variable cost: Select one: O a. Remains constant in the relevant range O b. Increase with the increase of activities O c. Increase with the decrease of activities O d. Decrease with the increase of activitiesWhat is the effect in contribution margin ratio if both selling price andvariable costs are increased by 10% and the fixed costs remain the same?1. Increase by 10%2. Increase by 5%3. Decrease4. Remains the same what is the best answer? another answer for this questionWhat is the effect in contribution margin ratio if both selling price andvariable costs are increased by 10% and the fixed costs remain the same?1. Increase by 10%2. Increase by 5%3. Decrease4. Remains the same what is the best answer?
- The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R² T-value a T-value b Activity 480 320 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $ $ 43,200 3,600 684.65 7.2884 34.469 0.99724 13.827 60.105 What is the variable cost per hour using the high-low…What is the effect in contribution margin ratio if both selling price andvariable costs are increased by 10% and the fixed costs remain the same?1. Increase by 10%2. Increase by 5%3. Decrease4. Remains the same what is the best answer? another answer for this.For the following table, the improved cost from one iteration only can lead to a total cost of: From/ To 1 3 Supply= A 2 440 B 5 720 4 840 6. Demand= 50 40 10 O a. 240 O b. 330 С. 390 O d. 280 е. 300 31