Which statement describes a variable cost?
A variable price is a corporate cost that transforms in ratio with manufacturing output. As soon as production increases, variable costs increase; once production decreases, variable expenses decrease.
You are watching: With respect to variable costs per unit, which of the following statements is true?
Which that the following statements best describes change costs?
Explanation because that correct answer: Variable cost is the cost that different in total in direct proportion to change in the level of activity. Hence option B is the appropriate answer.
Which the the following statements is correct v respect come variable expense per unit?
|Which the the following statements is correct with respect come variable expense per unit, in ~ the relevant range?||They will remain the exact same as manufacturing levels change|
|On a CVP graph, what does the horizontal line intersecting the dollar axis at the level of total cost represent?||Total solved costs|
Which of the following statements is true about fixed costs within the pertinent range?
Total fixed expenses are continuous within the pertinent range. Fixed expenses expressed top top a per unit basis will certainly decrease with boosts in activity. Fixed expenses expressed on a per unit basis will rise with reduce in activity.
Which is a characteristic of variable costs?
Characteristics of Variable expenses Variable costs vary in total in straight proportion to volume. Every unit variable expense remains fixed. It can be easily and also accurately assigned to operation departments. Departmental heads are responsible to manage these costs.
Which that the following expenses is an instance of a fixed cost?
What Is the Difference between Fixed Cost and Variable Cost?
|Examples||Depreciation, attention paid top top capital, rent, salary, building taxes, insurance money premium, etc.||Commission on sales, credit card fees, salaries of part-time staff, etc.|
Is salary resolved or variable?
Any employees who job-related on salary count as a fixed cost. They earn the same amount regardless of how your company is doing. Employee who occupational per hour, and whose hours adjust according to organization needs, space a change expense.
What are the 4 methods commonly used to determine the fixed and variable elements of a blended cost?
Answer: Four common approaches are offered to calculation fixed and variable costs: Account analysis. High-low method. Scattergraph method.
What room the different species of cost behavior?
There are four an easy cost behavior patterns: fixed, variable, mixed (semivariable), and step i m sorry graphically would show up as below. The relevant selection is the range of manufacturing or sales volume end which the assumptions around cost behavior are valid.
What is the dependent change in the blended cost evaluation formula?
Going ago to our mixed expense formula: Y= complete maintenance cost and also will be plotted on the upright axis of our graph. This price is the dependent variable due to the fact that the amount depends on the task for the period. X= the activity or variety of dogs groomed.
Which variable is dependence in a expense function?
In accounting, a dependent change is most likely to it is in the complete of a mixed expense that will adjust as the an outcome of several factors. A element that reasons the adjust in the full cost is referred to as the elevation variable.
What is the difference in between mixed variable and fixed costs?
Based ~ above behavior, prices are categorized together either fixed, variable or mixed. Fixed costs are continuous regardless of task level, change costs change proportionately with output and mixed prices are a combination of both.
What are instances of fixed and also variable prices in a fast food restaurant?
Fixed prices include rent, mortgage, salaries, loan payments, license fees, and also insurance premiums. These costs are simpler to budget plan for when opening a restaurant due to the fact that they don’t fluctuate much each month. Variable expenses include food, hourly wages, and also utilities.
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How do variable costs per unit behave?
Variable expenses are the expenses that change in total each time secondary unit is developed or sold. With a variable cost, the per unit expense stays the same, however the an ext units developed or sold, the higher the full cost. Straight materials is a variable cost. The variable expense per unit is constant.