Question: A cost that changes in proportion to changes in volume of activity is a(n): Select one: a. Differential cost. b. Fixed cost. c. Incremental cost.

A cost that changes in proportion to changes in volume of activity is a(n):

Select one:

a. Differential cost.

b. Fixed cost.

c. Incremental cost.

d. Variable cost.

e. Product cost.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

4. A disadvantage of the high-low method of cost analysis is that: Select one: a. it cannot be used when there are a very large number of observations. b. it uses two extreme data points, which may...

Q:

Question 10 1 pts Variable costs (on a per-unit basis) remain constant in proportion to changes in volume. True O False Question 13 1 pts Fixed costs, on a per-unit basis, have a directly...

Q:

Please read the tips given. Youir help will truly be appreciated. TIPS Required: (a) Calculate the contribution margin ratio. 1. Find the contribution margin - Per unit sales - per unit variable cost...

Q:

In CVP analysis, the unit contribution margin is: Sales price per unit less cost of goods sold per unit Sales price per unit less FC per unit Sales price per unit less total VC per unit Same as the...

Q:

The following information a available for a company's cost of sales over the last five months Using the high-low method, the estimated total fixed cost is: $25,000 $30,000 $13,602 $100,000 $50,000 A...

Q:

12. A cost thait changes in proportion to changes in volume of activity is an A. Diffferential cost B. Fixed cost C. Incremental cost D. Variable cost E. Product cost. 13. A cost with a flat oost...

Q:

Manufacturing expenditures that cannot be separately or readily traced to finished goods. Period costs. Cost that changes in proportion to changes in volume of activity. Variable costs The efforts of...

Q:

19. June sales were RM5,000 while projected sales for July and August were RM6,500 and RM7,000, respectively. Sales are 30% cash and 70% credit. All credit sales are collected in the month following...

Q:

A cost that changes in proportion to changes in volume of activity is: Group of answer choices Fixed cost Mixed cost Variable cost Product cost

Q:

A cost with a flat cost line within a relevant range that shifts to another level when volume significantly changes is a(n): Multiple Choice Step-wise cost. Fixed cost. Curvilinear cost. Incremental...

Q:

What is a normal good? What is the impact of an increase or decrease in income on the demand on normal goods?

Q:

What is breakthrough advertising? What is engaging advertising? Look through this textbook, find an example of each, and explain how they work. Prepare to explain in class why you evaluated the two...

Q:

To be in accordance with GAAP, companies are required to estimate the amount of uncollectible receivables and make an adjusting entry. The effect of the adjusting entry is to ______. Multiple choice...

Q:

Pantene targets women who want hair that will shine for days after a wash while blocking the sun s rays. With this brand, the company targets a niche market of women who are looking for shine and UV...

Q:

Early in August an undergraduate college discovers that it can accommodate a few extra students. Enrolling those additional students would provide a substantial increase in revenue without increasing...

Q:

Shirley Ferguson, an insurance broker, believes that for a particular contact the probability of making a sale is 0.4. If the random variable X is defined to take the value 1 if a sale is made and 0...

Q:

4.28 A factory manager is considering whether to replace a temperamental machine. A review of past records indicates the following probability distribution for the number of breakdowns of this...