WebExpert Answer 100% (3 ratings) Answer) variable cost is the cost which vary with production in total. Variable cost per unit remains same and does not change with change in … WebAnswer: The assumption is that total fixed costs and per unit variable costs will always be at the levels shown in Table 5.5 "Cost Equations for Bikes Unlimited" regardless of the level of production. This will not necessarily hold true under all circumstances.
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WebJul 14, 2024 · Consequently, the total costs, combining $16,000 fixed costs with $25,000 variable costs, would come to $41,000. Total costs are an essential value a company must track to ensure the business ... WebAboutTranscript. Changes in fixed costs will affect average fixed cost and average total cost, while changes in variable costs will impact average variable cost, marginal cost, and average total cost. Essentially, any change in costs can alter the financial calculations a business has to make in order to determine the most efficient way to ...
WebIn cost accounting and managerial accounting, three types of cost behavior are usually discussed: Variable costs. The total amount of a variable cost increases in proportion to … WebAnswers · Answer #1 >Total Variable cost INCREASES with an increase in level of activity, and >Total Variable cost DECREASES with an increase in level of activity. >However, >Unit variable cost stays the same, whether level of activity increases or d … View the full answer Transcribed image text:
WebDec 23, 2014 · Total Variable Cost = Rate x Activity In our planning and decision making calculations, we assume that the variable rate stays the same. Only the driver increases or …
WebQuestion: Describe how total variable costs and unit variable costs behave with changes in the level of activity. In applying the high-low method of cost estimation to mixed costs, …
WebTable 2.6 summarizes how costs behave within their relevant ranges. Summary of Fixed and Variable Cost Behaviors. Cost In Total Per Unit; Variable Cost: ... However, the total variable costs will range from $70.00, if Pat goes alone, to $350.00, if five people go. Figure 2.26 shows the relationships of the various costs, based on the number of ... how to set up my phone for tdcjWebQuestion: Show how each of these costs will behave as the volume of activity increases 1. Variable cost per unit А. Increases 2. Total variable cost B Decreases C 3. Fixed cost per unit Remains the same 4 Total fixed cost Show transcribed image text Expert Answer 1st step All steps Final answer Step 1/3 nothing is lessWebDec 15, 2024 · Variable costing: Direct material of $150,000; Direct labor of $75,000; Variable manufacturing overhead of $80,000 . Total = $305,000. Cost to produce special order of 1,000,000 phone cases = . Therefore, there is a contribution margin of $400,000 – $305,000 = $95,000. Based on our variable costing method, the special order should be … nothing is lost avatarWebA variable cost will change in total in proportion to changes in the level of activity. 3. A fixed cost is constant per unit of product. 4. Cost accumulation, cost allocation, and cost objects are interrelated. 5. A variable cost remains constant per unit, though in total increases as activity levels increase. 6. how to set up my playstation 5WebTotal costs, including both fixed and variable, are 85,000,000 if 160,000 units are produced. The variable cost per unit is: A. $31.25/unit B. 81.71/unit C. $35.96.25/unit D. $26.54/unit 5. If production increases by 25%, how will total fixed costs likely react? A. Increase by 12.5% B. Increase by 25% C Decrease by 25% D. Remain the same 6. nothing is lighter than a holeWebAnswer 1: Variable costs means costs which change with the level of activity (production). However, we have to keep in mind that as the production increases or decreases, the per unit variable cost does … View the full answer Transcribed image text: 1. nothing is like beforeThe behavior of costs in a company is analyzed according to whether they remain stable or evolve. Knowing the impact of the expenses on the company’s economy is vital for economic forecasting. However, while fixed costs are relatively easy to control, variable costs are not easy to handle. See more An important issue is that not all companies analyze what a fixed cost is and what is a variable cost in the same way. These analyses … See more The behavior of fixed or variable costs is often represented superimposed on the operational levels. That is done for different reasons by including elements not foreseen in the … See more Although, as we have seen, we can apply no single formula to the behavior of a cost, some behaviors can be understood in general. Therefore, although the cost per unit remains stable, the more units are produced or sold in … See more how to set up my podcast