What effect does an increase in volume have on—d. Total variable costs?

Q: How does the variable cost per unit change as the level of activity (or cost driver) increases? Why?

A: A variable cost changes is directly proportional to the change in the level of activity or cost…

Q: what is variable cost per unit?

A: Variable Cost = Cost which changes with change in units.   Variable Cost Per unit = It is Variable…

Q: Contribution margin is

A: Contribution margin is an important term used in cost-volume-profit analysis. It is the excess of…

Q: What is meant by an activity base when dealing with variable costs? Give several examples of…

A:

Q: Which is more consistent with cost-volume-profit analysis, variable costing or absorption costing?…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: Which costs will change with a decrease in activity within the relevant range? Unit variable cost…

A: Cost can be classified into two categories i.e fixed cost and variable cost. The fixed cost remains…

Q: Explain the methods of segregating semi-variable costs into fixed and variable cost.

A: Variable cost is the cost which remains variable and fluctuate according to the level of production.…

Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…

A: Average cost per unit only rewards the manager for removing tasks or materials from the process…

Q: A total cost equation can be used to predict future costs for various activity levels. Write the…

A: Concept The total cost is the sum of variable cost and fixed cost incurred For example if variable…

Q: What is the amount of the difference between the variable costing and absorption costing net…

A: Sales             3,311,000  Variable costs       Direct Materials           1,161,000…

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: Why is absorption costing the method allowable for GAAP yet managers prefer variable costing

A: In variable costing only variable costs are included in the product cost. Fixed costs re considered…

Q: Show income comparison's of absorption and variable costing?

A: Absorption costing method can be defined as the all the costs that is associated with the production…

Q: t variable cost o Compute the

A: Ans to Obj.3                          Working                      Particulars Amount $…

Q: What effect does an increase in volume have on—c. Total fixed costs?

A:

Q: revenues equal total fixed costs e given answers on margin equals total costs revenues equal total…

A: A CVP analysis is used to determine the sales volume required to achieve a specified profit level.…

Q: What is the variable cost per unit produced?

A: Variable costs are those costs which changes directly with change in level of activity. For example,…

Q: Dw much is the total variable cost per unit?

A: Variable cost per unit is the cost incurred for manufacturing each unit. It is determined by…

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: What is a variable cost? Identify two variable costs.

A:

Q: A cost which changes in proportion to changes in volume of activity is called a: *       a. fixed…

A: Costs are the expenses or amounts incurred in the business for manufacturing or selling of products.…

Q: VARIABLE COST PER UNIT What is the formula or method for finding the variablel cost per unit?

A: Variable cost is varies with number of units produced. Variable cost per unit is constant and total…

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: Which of the following costs has no relationship with the level of output? a) Semi-variable costs.…

A: Semi variable and variable costs has a direct relationship with the level of output. Stepped fixed…

Q: decrease in variable cost

A: Break even point is the level of sales at which an entity begins to generate profit. Break even…

Q: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: What is a relationship between fixed, variable and semi-variable cost?

A: Cost can be defined as the amount incurred upon the production of goods and services for the final…

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: What is the high-low method used to estimate? a. variable costs and production capacity b. total…

A: The high-low method is a method using which the variable cost per unit and total fixed cost is…

Q: In applying the high-low method, what is the unit variable cost?

A: Formula: Variable cost per unit= Total cost of high actvity- Total cost of low actvityHighest…

Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…

A: Option a is correct.

Q: Which of the following is true of a variable cost? Total variable cost remains constant with…

A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…

Q: Describe how total variable costs and unit variable costs behave as the level of activity increases?

A: Variable cost varies with the changing level of activity i.e. if the activity increases the variable…

Q: How does the length of the time horizon affect the classification of a cost as fixed or variable?…

A: Cost are being classified as variable and fixed normally. It is necessary to bifurcate the cost in…

Q: What effect does an increase in volume have on—a. Unit fixed costs?

A: Fixed costs are those costs of business which remain fixed in total irrespective of change in volume…

Q: What is meant by the term cost driver? What is a volume-based cost driver?

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: If fixed costs increase, what would be the impact on the (a) contribution margin?

A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…

Q: What is a fixed cost? A variable cost? A mixed cost? Give an example of each

A: Costs are the expenses incurred in business. It means costs incurred for the manufacturing of…

Q: Which of the following describes the behavior of total variable and total fixed costs when level of…

A: Different costs associated with production process are - Fixed cost and variable cost. For example:…

Q: Min z? reglar unit cost? and suber unit cost?

A: Type A Type B Unit cost Regular fuel 2 units 2 units 1$ Super fuel 2 units 4 units 2$ New…

Q: What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable…

A:

Q: How do you get the variable cost per unit produced and sold?

A: Variable Cost per unit produced :To get this, we take the total of all the variable costs in the…

Q: Increasing variable cost while decreasing fixed cost

A: Fixed cost refers to the cost that remains the same at any level of production i.e. Fixed cost…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.