. What is the difference between variable and fixed costs? Also explain how the total variable cost and total fixed cost is affected by increasing the number of units produced?  What happens to the total variable cost per unit and total fixed cost per unit? 3.  What is a mixed cost? 2. The high-low method of analyzing mixed costs uses only two observation points: the high and low points of activity. Are these always the best points for prediction purposes? Why or why not?

Q: Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs…

A: CVP Chart:   Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…

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: A company observed a decrease in the cost per unit. All other things being equal, which of the…

A: The production iincludes of variable and fixed costs.

Q: A company observed a decrease in the cost per unit All other things being equal, which of the…

A: SOLUTION- 1-You can reduce the unit cost of products by lowering your overhead cost per item. 2- By…

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: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: Which of the following statements is true about fixed and variable costs? * Both costs are constant…

A: Solution:- When sales units are increases or decreases the total sales also increase or decreases…

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: Which of the following statements about margin of safety is false? O a. If the variable cost per…

A: If Fixed cost decreases remaining constant Break even sales automatically Break even sales reduces…

Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…

A: The Margin of Safety is the difference between the Budgeted Revenues and Breakeven Revenues.…

Q: For each model, compute the contribution margin per unit.  B. For each model, compute the…

A: A. Contribution margin per unit = Sales revenue - Variable costs Calculate contribution margin per…

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: 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: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As…

A: The correct answer is option (3).

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: If the units produced exceed unit sales, which method would you expect to show the higher…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Which of the following statements regarding graphs of fixed and variable costs is true?  (a)…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: How does this change in the variable cost per unit affect the break-even chart?

A: Break even point the minimum selling target, an organisation needs to achieve in order to recover…

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…

A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…

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: 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: Please explain thoroughly the statement below. (True/false), how and why?  "When expressed on a…

A: POINTS TO BE NOTED -    ** Fixed cost will remain constant irrespective of change in the level of…

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: if a manager constrained by limiting resource, he can be to produce those products which have the…

Q: 1. One way management considers their costs is as average costs. Under this approach, managers can…

A:

Q: Which of the following is not a step st driver rate by the volume of cost w to reduce the costs of…

A: Explanation: Activity based costing is a costing  technique where production is split into different…

Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…

A: The question is multiple choice question.The question is related to cost volume profit analysis.…

Q: Which one of the following is not an assumption of CVP analysis?   The behavior of costs and…

A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…

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: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: If the number of units produced decreases, which of the following is true? answer choices…

A: Lets understand the basics. Variable costs are cost which changes with level of output. For ex.…

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: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: When constrained by some budget or limited sources managers often try to make products which lie in…

Q: Which of the following statements about margin of safety is false? If the variable cost per unit…

A: Margin of safety can be referred to as the difference between the break even sales and the expected…

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: 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: Which of the following is not a potential advantage of variable costing relative absorption costing?…

A: Cost volume profit analysis is calculated by dividing the fixed cost by the unit contribution…

Q: Which one of the following statement is not correct? O Both fixed and variable costs influence…

A: The incorrect statement is "opoortunity costs are only considered when resources are limited" This…

Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: If the units produced and unit sales are equal, which method would you expect to show the highernet…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

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 costs are always incremental and relevant in decision analysis?       a)…

A: Avoidable  costs are those costs that can be avoided if some production is stopped or outsourcing of…

Q: The break-even point in CVP analysis is defined as the point   1)  where output units equal input…

A: A Break-even point is a level of sales at which there is no profit or loss. Hence, at the break-even…

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: Explain the behavioral problem that can result when cost-plus prices are based on variable cost.

A: Following is the answer to the given question