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.

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: 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: R-squared is a measure of a. The spurious relationship between cost and activity D. The fxed cost…

A: R-Square measures that how much variation of a dependent variable is explained by a independent…

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: 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 is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: What effect does an increase in volume have on: Unit fixed costs? Unit variable costs? Total…

A: Increase in volume simply means the increase in production level.

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: 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: Which of the following cost behavior assumptions is true? (You may select morethan one answer.)a.…

A: Variable cost: The cost which changes according to the level of activity. These are not fixed in…

Q: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…

A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…

Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…

A: Variable costs: These are the costs that proportionately change with the changes in the activity…

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

A:

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: Which of the following statements is true? a. Both variable and fixed cost change with the change in…

A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…

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: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: What is the total variable cost per unit What is the total fixed cost What is the contribution…

A: Contribution margin per unit=Revenue per unit- Variable cost per unitRevenue per unit×100

Q: B\ If the variable cost per la gorts fixed costs, and total costs if production is

A: solution given Variable cost 10 per unit Fixed cost of production 2000   Number…

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

A: Option a is correct.

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: Which one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…

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

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: 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: Variable costs are costs that:  a) Vary inversely proportional with changes in activity b) Remain…

A: Total variable costs increase with the increase in activity and decrease with the decrease in…

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:    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: Explain the impact of an increase in the level of activity (or cost driver) on (a) total fixed cost…

A:

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: 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: 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: Which of the following describes the behavior of the fixed cost per unit?             Decreases…

A: Fixed cost is the cost that remains constant irrespective of the level of production. Whereas…

Q: Which of the following statements describes variable costs?A. Costs that vary on a per-unit basis as…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: What is happening to average costs when marginal cost is greater than average cost at a specific…

A: When marginal cost is greater than average cost (including average variable cost or average total…

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: Which of the following do not increase or decrease when the volume of production changes? O a. Fixed…

A: Some cost do not get affected by the volume of production. It remains same at all the levels of…

Q: A fixed cost remains constant in total and on a per unit basis at various levels of activity. Ture O…

A: Following is the answer to the given question

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…

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

A: