Question: : Variable costs are costs that: vary directly in total with changes in the level of activity. vary inversely in total with changes in the

: Variable costs are costs that:

  1. vary directly in total with changes in the level of activity.
  2. vary inversely in total with changes in the level of activity.
  3. decrease on a per unit basis as the level of activity increases.
  4. increase on a per unit basis as the level of activity increases.

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:

Perke Corporation purchased 80% of the stock of Superstition Company for $1,970,000 on January 1, 2025. On this date, the fair value of the assets and liabilities of Superstition Company was equal to...

Q:

The fixed cost per unit varies with changes in activity base. True False A project supervisors salary is an example of a fixed cost. True False Direct materials cost is an example of a fixed cost of...

Q:

Product costs are: A. expensed when incurred. B. inventoried. C. treated in the same manner as period costs. D. treated in the same manner as advertising costs. E. subtracted from cost of goods sold....

Q:

Managerial accounting Test Cash is _King________________________. Variable costs in total increase or decrease in proportion with changes in the level of business activity. 3. Opportunity costs are...

Q:

Which One is True ? Group of answer choices Variable Costs will change or vary per unit with changes in the level of Activity or Volume Fixed Costs will remain constant per unit regardless of the...

Q:

True or False ( 10 point 1 point each) ________1. The relevant activity base for a cost depends upon which base is most closely associated with the cost and the decision-making needs of management....

Q:

This question has five parents: 1. Variable costs in total increase or decrease in proportion with changes in the level of business activity: a. true b. false 2. Variable cost per unit remains...

Q:

A project supervisors salary is an example of a fixed cost. True False Direct materials cost is an example of a fixed cost of production. True False Total fixed costs change as volume of activity...

Q:

True/False Questions ____ 1. Industries that typically use process cost systems include chemicals, oil, metals, paper, and pharmaceuticals. ____ 2. The methods of evaluating capital investment...

Q:

Hi guys, could you tell me what else can I add to this Discussion Post? It's not mine, I'm just replying!! --- Fixed costs are costs that remain the same in total regardless of changes in the...

Q:

Vary in total directly and proportionately with changes in activity level. 2 ) Remain the same in total regardless of changes in activity level. 3 ) Remain the same per unit at every activity level....

Q:

An ethical issue is an identifiable problem, situation, or opportunity that requires a choice among several actions. In the advertising area, deciding if a specific ad is ethical or unethical can...

Q:

On October 31, 2017, Pahonan Inc. (Pahonan) purchased 75 percent of the common shares of Seebe Ltd. (Seebe) for $1,500,000. Pahonan's and Seebe's balance sheets on October 31, 2017, just before the...

Q:

Interest received on amounts deposited with an overseas branch of a U . S . corporation is treated as foreign - source income if the branch is engaged in the commercial banking business. True False

Q:

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

Q:

Using the information gathered in Application Exercise 7, prepare a combination general rsum that could be used with at least three of the advertised positions. Partner with a classmate to proofread...

Q:

Technology. Assume you worked for your father at his car dealership while attending school. Because you have limited work experience, you want to include this on your rsum. You have written the...

Q:

What content should go in the closing paragraph of an application letter? (Objective 1)