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 c. Increase with the decrease of activities O d. Decrease with the increase of activities
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Q: What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable…
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- Which of the following best describes a variable cost? A cost that: a. Represents a fixed proportion of total costs b. Has a direct relationship with outputc. Is sometimes also known as an indirect cos d. Falls on average, as output increases.The increase/decrease in variable cost from existing level to the new level is called as __cost. a.Standard b.Marginal c.Fixed d.OpportunityWhen 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.
- Fixed cost per unit ______ A. Can be estimated by the high - low method. B. Remains the same when the level of activity changes. C. Are represented by the slope of the total cost line. D. All of the above answers are correct.In describing the cost formula equation, Y = a + bX, which of the following is correct?a. “Y” is the independent variableb. “a” is the variable cost per unitc. “a” and “b” are valid for all levels of activityd. in the high-low method, “b” equals the change in cost divided by the change in activity.In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False
- 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 changes1.) 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 describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing production
- Within the relevant range, as volume of activity increases a. Total fixed costs remain the sameb. Fixed cost per unit decreasesc. Variable cost per unit remains the samed.Total variable costs increasese. all of the aboveWhat effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs?Which of the following is correct concerning reactions to INCREASES in activity? Variable Cost Per Unit A) B) C) D) Total Variable Cost Increase Constant Decrease Increase Decrease Decrease Constant Constant