Question: Changes in activity level have a ( n ) _ _ _ _ _ _ _ _ _ _ _ _ effect on fixed costs

Changes in activity level have a(n)____________ effect on fixed costs per unit.
1. inverse, 2. neutral, 3. offsetting, 4. positive

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:

2. Total fixed costs regardless of changes in activity level (within a relevant range) Fixed costs per unit in proportion to changes in activity level

Q:

What are the three major types of product costs in a manufacturing company? Define the following: (a) direct materials, (b) indirect materials, (c) direct labor. (d) indirect labor, and (e)...

Q:

1 - 4 . Distinguish between ( a ) a variable cost, ( b ) a fixed cost, and ( c ) a mixed cost. 1 - 5 . What effect does an increase in the activity level have on a . Average fixed costs per unit? b ....

Q:

What are the three major types of product costs in a manufacturing company? Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e)...

Q:

What effect do changes in activity have on fixed costs per unit? a. no effect. fixed costs per unit stay the same at every activity level b. an inverse effect c. a directly proportional effect d. it...

Q:

(Please answer the following questions below in your own words, NOT copied sources from the internet. Thank you.) Question #1 Please distinguish fixed and variable costs. Identify an example of each....

Q:

Creger Corporation, which makes landing gears, has provided the following data for a recent month Budgeted production Standard machine-hours per gear Budgeted supplies cost Actual production Actual...

Q:

Which of the following is a difference between fixed costs and variable costs? a . Fixed costs per unit increases within a relevant range as the level of output increases, whereas variable costs are...

Q:

Which of the following is a difference between fixed costs and variable costs? a. Fixed costs per unit increases within a relevant range as the level of output increases, whereas variable costs are...

Q:

Murie Corporation makes one product and has provided the following information: Budgeted selling price per unit $ 98 per unit sold Budgeted unit sales, February 11,000 units Raw materials requirement...

Q:

Write a program that converts feet to fathoms. Look up the conversion factor and assign it to a properly named constant (see page 80). The program should permit the user to enter the feet perhaps...

Q:

Recommendations : Goldman Sachs rating system was not that beneficial for the employees to improve their contribution to the organization. Low rating was demoralizing the employees and not being...

Q:

Bernie is a depositor in BigBank and has no agreement regarding overdraft provisions. Bernie writes a check to Webster who endorses it to Reggie. Reggie presents the check for payment when Bernie has...

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.