Accounting ch18

Which of the following is the correct statement about fixed costs?

The fixed cost per unit will decrease when volume increases.

Which of the following is the correct statement about variable costs?

The variable cost per unit will not change when volume increases.

When preparing a scatter diagram, the estimated line of cost behavior is drawn on a scatter diagram to show the relation between:

cost and unit volume

fixed

depreciation

variable

direct materials

A________cost remains unchanged when the volume of activity changes within the relevant range.

fix

CVP analysis looks at how________ is affected by sales price per unit, variable costs per unit, volume, and fixed costs.

income

Each of the following are methods used to separate mixed costs into their fixed and variable components except:

low-high method

Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25 per unit assembled. This is an example of a ______ cost.

mixed

Cost-volume-profit analysis helps managers predict how changes in ___ and ________ levels affect income.

sales and costs

mixed

water and electricity