as volume increases total fixed cost remains the same true or false
Answer: True
.
A cost that does not vary with the level of activity (volume (or) output (or) production) is called a fixed cost.
In other words, fixed cost remains constant at any level of activity or production.
Note:
However, fixed cost per unit varies with the changes in the level of activity.
Question 12 As production increases, the fixed cost per unit increases O decreases remains the same either increases or decreases, depending on the variable costs
Cost-volume-profit analysis assumes fixed costs: Remains constant on a per unit basis as activity changes. Remains constant from one period to the next. Increases in total as activity increases. Remains constant as activity changes. None of these.
51. If the activity level increases, what happens to the total fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends on how much the activity level increases. 52. If the activity level increases, what happens to the unit fixed cost? a. It decreases. b. It increases. c. It remains the same. d. It depends on how much the activity level increases. 53. If activity level increases, what happens to the unit variable cost?...
1)Which of the following statements is true? A. Average fixed cost equals total fixed cost divided by total output. B. Average total cost always falls as output increases. C. Average fixed cost equals average total cost plus average variable cost. D. Average variable cost is always greater than average fixed cost. 2) As output increases, average fixed cost A. remains constant. B. always decreases. C. decreases, then increases. D. increases, then decreases. 3) Average total cost minus average variable cost...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
7. As production volume increases, a variable cost a. Increases on a per-unit basis b. Remains constant on a per-unit basis c. Remains constant in total d. Decreases in total e. None of the above 8. The predetermined overhead rate is developed from a. Forecast cost and forecast activity b. Forecast cost and actual activity c. Actual cost and forecast activity d. Actual cost and actual activity e. None of the above 9. Which of the following would not be...
Total cost equals the sum of fixed costs and average costs. True False
37. As production increases, the fixed cost per unit decreases increases either increases or decreases, depending on the variable costs remains the same
Question Completion Status: QUESTION 10 If selling price per unit remains the same, unit variable cost remains the same, sales volume in units remains the same, and total fixed costs increase by $10,000, which of the following predictions is correct? Unit Contribution Margin Break-Even Volume Total Profit ОА Same Increase Decrease Same Decrease Decrease Increase Increase Decrease Decrease Decrease Increase Decrease Increase Decrease QUESTION 11 At sales volume of 600 units, variable costs are 58 per unit, and fixed costs...
If a company’s total fixed cost increases by $10,000 and all other factors in the CVP analysis remain the same, which of the following will be TRUE? A) The break-even point will increase. B) The variable cost ratio will increase. C) The break-even point will decrease. D) The contribution margin ratio will increase.