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