As the level of activity increases, how will a mixed cost in total and per unit behave?
a. Increase in total but would decrease per unit Show
b. Increase in total and per unit c. Increase per unit but would increase in total d. None of these e. Decrease in total and per unit  Q: Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is… A: The total cost of production includes the variable costs, fixed costs and mixed costs. Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if… A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of… Q: The break-even point is that level of activity where: Select one: a. sales revenue equals fixed… A: Break Even point is a level where Profit is Zero Q: A cost which remains constant per unit at various levels of activity is a Select one: a. mixed cost.… A: Solution: A cost which remains constant per unit at various levels of activity is a "Variable 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 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: 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: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.… A: Option c is the answer. 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: 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: Which cost will fall as production is reduced? Total variable costs Variable costs per… A: Production is the total output produced by the manufacturer during the period. 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: 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: 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 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: 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: 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: All else being equal, what happens to the unit contribution margin and the contribution margin ratio… A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the… Q: All else being equal , what happens to the unit contribution margin and the contribution margin… A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of… Q: If a company increases its fixed cost for product B, then the contribution margin per unit will… A: Fixed cost is that cost which remains constant at particular level of… 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: 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: If a company increases its fixed costs for Product B, then the contribution margin per unit will… A: Click to see the answer Q: Fixed costs per unit . Can be estimated by the high-low method. O Remains the same when the level of… A: The monetary value paid for the acquisition of something, or to run the operations of the… 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 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: A fixed cost is a cost which Group of answer choices varies inversely in total with changes in… A: Fixed cost is a cost that remains constant as volume of activity changes but per unit basis varies… Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio… A: Contribution Margin = Sales per unit - Variable cost per unit 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 is NOT true about costs per unit within the relevant range?… A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies… 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: 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: 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: Contribution margin Select one: O a. excludes variable selling costs from its calculation. O b.… A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which… Q: A cost which remains constant per unit at various levels of activity is a * O variable cost O fixed… A: “Since you have asked multiple questions, we will solve the first question for you. If you want any… Q: Determine the variable cost per unit and the fixed cost using the high-low method. 2. What is the… A: Variable Cost per unit= (Highest units - Lowest units)/ (Highest Cost- Lowest Cost)… Q: the product with the higher contribution ratio , which of the following is true ? O a Fixed cost… A: Below option is true:- d. the average contribution margin ratio will increase Q: RUE OR FALSE. 1. If volume increases, all costs will increase. 2. Changes in the level of activity… A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for… Q: How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why? A: Fixed cost refers to such overheads that are not directly related to the business and which do not… 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: 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. Knowledge Booster Learn more about Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below. Recommended textbooks for you Principles of Accounting Volume 2 ISBN:9781947172609 Author:OpenStax Publisher:OpenStax College Cornerstones of Cost Management (Cornerstones Ser... ISBN:9781305970663 Author:Don R. Hansen, Maryanne M. Mowen Publisher:Cengage Learning Fundamentals Of Financial Management, Concise Edi... ISBN:9781337902571 Author:Eugene F. Brigham, Joel F. Houston Publisher:Cengage Learning Financial And Managerial Accounting ISBN:9781337902663 Author:WARREN, Carl S. Publisher:Cengage Learning, Managerial Accounting ISBN:9781337912020 Author:Carl Warren, Ph.d. Cma William B. Tayler Publisher:South-Western College Pub Survey of Accounting (Accounting I) ISBN:9781305961883 Author:Carl Warren Publisher:Cengage Learning Principles of Accounting Volume 2 ISBN:9781947172609 Author:OpenStax Publisher:OpenStax College Cornerstones of Cost Management (Cornerstones Ser... ISBN:9781305970663 Author:Don R. Hansen, Maryanne M. 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What will happen if a firm increases its activity level?Answer and Explanation: If a firm increases its activity level d) some costs will change, others will remain the same. Costs that change with activity are known as variable costs, such as costs of raw materials or direct labor. Costs that remain the same are known as fixed costs, such as rent or utility payments.
What effect does an increase in activity in the activity level have on total variable costs?Variable costs are costs that are directly related to the volume of activity. As the volume of activity increases, the total variable costs will also increase. On the other hand, if the volume of activity decreased, the total variable cost will also decrease.
What effect does an increase in activity in the activity level have on unit fixed costs total fixed costs total variable costs?Answer and Explanation: Answer: b) Fixed costs per unit decrease and variable costs in total increase. Fixed costs are costs that are fixed in total and does not vary in relation to the changes in activity level, therefore as per unit of activity level increases, the fixed cost per unit would decrease.
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