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

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...

See similar textbooks

Related questions

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: 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: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is a) Fixed costs Fixed cost…

Q: What is the effect of an increase in activity on the followingitems?a. Total variable costs.b.…

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: elect one: a. Average fixed costs per unit fall as the level of activity rises. b. Average fixed…

A: Ans. Average fixed cost is measured by dividing the total fixed cost by the units of output…

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: Which of the following statements is correct about fixed costs? a. Fixed costs vary on per unit…

A: SOLUTION EXPLANATION- 1-FIXED COST DOES NOT CHANGE BASED ON ACTIVITY. 2-THE COST WILL STAY THE SAME…

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: Fixed costs per unit increase proportionately with increases in volume of activity within the…

Q: Select the correct statement regarding fixed costs. A) Because they do not change, fixed costs…

A: Fixed costs are the costs that remain constant irrespective of the volume of production.

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: 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 of activity, variable cost per unit will: O a increase in proportion with…

A: There are two type of main costs in the business. These are fixed costs and variable costs.

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 variable cost is a cost thata. varies per unit at every level of activity.b. occurs at various…

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

Q: Select the correct statement regarding fixed costs. They do not change, because fixed costs should…

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: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…

A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…

Q: Harof activity increases, total variable costs a. decrease. b. remain the same. c. Increases in…

A: Variable costs: Variable costs means costs which changes with the level of output. Variable cost per…

Q: Within the relevant range: a. both total variable costs and total fixed costs will remain…

A: The costs incurred into the production are classified as fixed and variable costs. The variable…

Q: 1. As activity increases, unit variable cost, Increases by a fixed amount, increases proportionately…

A: Answer 1. As activity increases, unit variable cost increases proportionately with activity.

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: Variable costs are expenses that ________. a.remain constant on a per-unit basis but change in…

A: Variable costs as the name suggests are those costs which are variable in nature or these costs will…

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

A: Option a is correct.

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: When the total fixed costs decrease, the contribution margin per unit ________. A. increases…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit Total fixed cost…

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: When the level of activity increases, total fixed costs a. decrease. b. remain the same. c.…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With…

Q: Within the relevant range, the change in activity level will result in a. A change in both of…

A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…

Q: PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is…

A: Variable costs are those costs that changes with change in level of activity. Fixed costs are costs…

Q: Show how each of these costs will behave as the volume of activity decreases.…

A: The volume of activity directly impacts the variable cost because the variable cost changes directly…

Q: Variable Costs are costs that change in direct proportion to changes in activity level. (b) Unit…

A: Variable costs: These are the costs that vary depending on the volume of the activity. Fixed costs:…

Q: Variable costs are costs that: A.vary inversely proportional with changes in activity B.Remain…

A: Variable cost : Variable costs are constant per unit and change in total while fixed costs always…

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

A: Fixed costs are those costs that remain fixed irrespective of the level of activity.

Q: Which of the following describes the behavior of the variable cost per unit?

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…

A: The total cost of a product can be variable or fixed cost.

Q: Fixed costs are costs that: Select one: a. Neither of the above b. remain the same per unit at every…

A: Fixed Cost Correct Answer = Option B = Remain the same per unit at every activity level Variable…

Q: Variable costs are costs that: Select one: a. Both (a) and (b) above. b. vary in total directly and…

A: The costs incurred in production can be classified as variable cost, fixed cost and mixed cost.

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: 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: The high-low method: a. Calculates variable costs per unit by dividing the difference in the high…

A: The high-low method is a method to separate or segregate the fixed and variable cost portions of a…

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

Q: Variable costs are costs that: vary inversely proportional with changes in activity Remain constant…

A: Variable cost refers to the cost that varies in total amount with the changes units produced by the…

Question

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Explanation:

VIEW

Answer:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which of the following statements is true regarding average fixed costs? A. Average fixed costs per unit remain fixed regardless of level of activity. B. Average fixed costs per unit rise as the level of activity rises. C. Average fixed costs per unit fall as the level of activity rises. D. Average fixed costs per unit cannot be determined.
Variable costs are expenses that ____________________________ . remain constant on a per-unit basis but change in total based on activity level remain constant on a per-unit basis and remain constant in total regardless of activity level decrease on a per-unit basis as activity level increases remain constant in total regardless of activity level within a relevant range
Describe how total variable costs and unit variable costs behave with changes in the level of activity
When fixed costs increase and all other variables remain unchanged, the contribution margin will A. remain unchanged _____________________. B. increase C. decrease D. increase variable costs per unit
How does the length of the time horizon affect the classification of a cost as fixed or variable? What is the meaning of short run? Long run?
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
What is the effect of an increase in activity on the followingitems?a. Total variable costs.b. Variable costs per unit of activity.c. Total fixed costs.d. Fixed costs per unit of activity.
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.
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
Variable costs per unit are affected by an increase or decrease in activity. True or False True False
variable costs change in direct proportion to a change in the activity level. True or False?
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 changes