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Costs that remain constant in total dollar amount as the level of activity changes are called

a. Mixed Cost

b. Fixed Cost

c. Variable Cost

d. Opportunity Cost

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Reid Wolff
Reid WolffLv2
8 May 2020

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Related questions

Why is it important to identify the most appropriate costdrivers for a particular product?

A) so managers can identify the activities necessary tomanufacture a product

B) so managers can control product costs better

C) so managers can predict product costs better and make betterdecisions

D) B and C

Answer:

Cost drivers are ________.

A) the different functions in the value chain

B) different types of functional areas in the firm

C) measures of activities that require the use of resources andthereby cause costs

D) different types of cost calculations

Answer:

Within the relevant range, the total amount of ________ costchanges in direct proportion to changes in the cost driver. Withinthe relevant range, the total amount of ________ cost does notchange in direct proportion to changes in the cost driver.

A) fixed; variable

B) variable; fixed

C) step; mixed

D) mixed; step

Answer:

What happens when the cost-driver level increases within therelevant range?

A) Total fixed costs remain unchanged.

B) Fixed costs per unit of cost driver increase.

C) Total variable costs decrease.

D) Variable costs per unit of cost driver increase.

Answer:

Which of the following costs is a fixed cost?

A) cost of dairy ingredients used to produce ice cream

B) depreciation expense on factory building

C) fuel used by delivery trucks

D) labor wages of workers who mix dairy ingredients to make icecream

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would:

a. increase.
b. remain the same.
c. decrease.

d. increase or decrease, depending upon the percentage increase in wage rates.

Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

a. 53% and $7 per unit.
b. 47% and $11 per unit.
c. 52% and $11 per unit.

d. 47% and $8 per unit.

If sales are $500,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage?

a. 0
b. 1.3
c. 3.1

d. 1.25

Which of the following describes the behavior of the fixed cost per unit?

a. Increases with increasing production
b. Remains constant with changes in production
c. Decreases with increasing production

d. Decreases with decreasing production

If variable costs per unit decreased because of a decrease in utility rates, the break-even point would:

a. increase.
b. increase or decrease, depending upon the percentage increase in utility rates.
c. decrease.

d. remain the same.

Costs that vary in total in direct proportion to changes in an activity level are called:

a. differential costs.
b. fixed costs.
c. variable costs.

d. sunk costs

Which of the following conditions would cause the break-even point to increase?

a. Total fixed costs decrease
b. Unit variable cost decreases
c. Unit variable cost increases

d. Unit selling price increases

In cost-volume-profit analysis, all costs are classified into the following two categories:

a. discretionary costs and sunk costs
b. variable costs and fixed costs
c. mixed costs and variable costs
d. sunk costs and fixed costs

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

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