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You are watching: If production increases by 30%, how will total variable costs likely react?

1) TRUE OR FALSE:- a)TRUE b)TRUE c)TRUE d)FALSE e)TRUE f)TRUE g)TRUE h)TRUE i)FALSE j)FALSE k)FALSE l)TRUE m)TRUE N)FALSE o)FALSE P)FALSE q)TRUE r)FALSE s)TRUE 2)ANSWERS OF MULTIPLE CHOICE QUESTIONS:- 1) a) VARIABLE COST REASON: Fixed price stays to…View the complete answer
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Transcribed picture text: 1. Write TRUE if the statement is correct and FALSE if the statement is wrong. A. Total resolved costs perform not adjust in response to alters in the volume of pro duction...... B. In a production firm, addressed prices remain the same at many kind of different manufacturing levels within the relevant selection......... C. Unit variable expenses execute not readjust as complete manufacturing increases...... D. Mixed prices are pudepend fixed........ E. Fixed expenses per unit decrease as manufacturing levels boost....... F. The fixed price per unit does not always remajor the exact same.......... G. Total variable prices adjust in straight propercentage to transforms in volume... H. Total combined prices increase as volume rises bereason of the variable price component..... I. Relevant variety is the array of task (volume) over which total resolved expenses and variable prices per unit deserve to be assumed to remajor the very same... J. At any kind of provided volume, average fixed expenses have to equal average variable costs... K. When using the high-low technique, addressed expenses and also variable prices appear in the very same expense equation............ L. When using the high-low approach, the "low" allude have to be favored as the information point through the lowest volume (not the lowest cost). M. A contribution margin income statement permits managers to watch which expenses will readjust through alters in volume and also which expenses will certainly remain solved......... N. The expense of goods offered is a variable price for manufacturers, however includes a mix ture of variable and also solved manufacturing costs for Merchandise Company kind of 0. The contribution margin per unit is how much profit each unit contributes after resolved costs are considered............ P. The break-also suggest is the sales level wright here operating income is positive. Q. The break-even suggest represents the minimum variety of devices a agency have to offer before it earns a profit............ R. The margin of safety and security is the excess of expected sales over break also sales. S. The margin of security have the right to be expressed in devices, in sales dollars, or as a per centage......... 1. A(n) price is a price whose full amount changes in direct proportion to a change in volume. A. variable B. fixed C. mixed D. irappropriate 2. Which of the complying with expenses is an example of a addressed cost? A. Sales comgoals B. Salary of plant manager C. Direct materials D. Deliextremely expenses 3. Variable costs are explained whereby of the adhering to statements? A. They vary per unit of output. B. They are resolved in total. c. They are solved per unit and differ in full. D. They decrease per unit as manufacturing volume increases 4. Total fixed prices for Randolph Manufacturing are 8754,000. Total expenses, including both solved and also variable, are 85,000,000 if 160,000 units are developed. The variable expense per unit is: A. $31.25/unit B. 81.71/unit C. $35.96.25/unit D. $26.54/unit 5. If manufacturing rises by 25%, just how will full solved costs likely react? A. Increase by 12.5% B. Increase by 25% C Decrease by 25% D. Remajor the very same 6. If production increases by 30%, just how will certainly total variable expenses likely react? A. Increase by 15% B. Decrease by 30% C. Increase by 30% D. Remain the exact same 7. Managers should think about which of the adhering to when predicting costs at different volumes? A. The relevant range of the cost B. The kind of expense behaviour Management Accounting Tutorial - Page 3 of 6 0/0/0 C. Both of the above need to be taken into consideration. D. Neither of the above must be considered. 8. To find the variety of devices that must be sold to breakeven, the formula used could be A solved expenses contribution margin per unit. B. contribution margin per unit : resolved expenses. C. fixed expenses contribution margin proportion. D. contribution margin proportion • fixed expenses. 9. On a CVP graph, the complete price line intersects the complete revenue line at which of the following points? A. The breakalso suggest B. The level of the variable prices C. The level of the resolved costs D. None of the above