1. Which of the following describes the behavior of a variable cost per unit? varies in decreasing...
Question:
1. Which of the following describes the behavior of a variable cost per unit?
varies in decreasing proportion with changes in the activity level
varies in direct proportion with the activity level
remains constant with changes in the activity level
varies in increasing proportion with changes in the activity level
2. Which of the following is not an example of a cost that varies in total as the number of units produced changes?
electricity per KWH to operate factory equipment
straight-line depreciation on factory equipment
wages of assembly worker
direct materials cos
3. As production increases, variable costs per unit
increase
stay the same
decrease
either increase or decrease, depending on the fixed costs
Materials Science and Engineering An Introduction
ISBN: 978-1118324578
9th edition
Authors: William D. Callister Jr., David G. Rethwisch