Which of the following statements describes variable costs?
Costs that vary on a per unit basis as the level of activitychanges
Costs that vary in total in direct proportion to changes in thelevel of activity
Costs that remain the same in total dollar amount as the levelof activity changes
Costs that vary on a per unit basis but remain the same in totalas the level of activity changes
A variant of fiscal-year budgeting whereby a twelve-monthprojection into the future is maintained at all times iscalled:
A. Flexible budgeting
B. Continuous budgeting
C. Zero-based budgeting
D. Master budgeting
Which of the following statements describes variable costs?
Costs that vary on a per unit basis as the level of activitychanges
Costs that vary in total in direct proportion to changes in thelevel of activity
Costs that remain the same in total dollar amount as the levelof activity changes
Costs that vary on a per unit basis but remain the same in totalas the level of activity changes
A variant of fiscal-year budgeting whereby a twelve-monthprojection into the future is maintained at all times iscalled:
A. Flexible budgeting
B. Continuous budgeting
C. Zero-based budgeting
D. Master budgeting
Related questions
If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would:
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Name the definitions given below:
______________ | 1. | Technique that examines changes inprofits in response to changes in sales volumes, costs, andprices. |
______________ | 2. | Percent by which the selling price (orrevenue) per unit exceeds the variable cost per unit, orcontribution margin as a percent of revenue. |
______________ | 3. | Diagram of the relationship betweentotal revenues and total costs; illustrates how an organizationâsprofits are expected to change under different volumes ofactivity. |
______________ | 4. | Index of the extent to which the costfunction is made up of fixed costs. |
______________ | 5. | Total revenue minus total variable costs. |
______________ | 6. | Proportion of different products or services that anorganization sells. |
______________ | 7. | Excess of an organizationâs expectedfuture sales (in either revenue or units) above the breakevenpoint. |
______________ | 8. | The level of activity where equal costor profit occurs across multiple alternatives. |
______________ | 9. | Selling price per unit minus variablecost per unit. |
______________ 10. | Level of operating activity at whichrevenues cover all fixed and variable costs and there is noprofit. | |
______________ 11. | Margin of safety as a percentage ofactual or estimated sales (units or revenues). | |
______________ 12. | A systematic tendency for people to beoverly optimistic about the outcomes of their plans andprojects. | |
