Which costs will change with a decrease in activity within?

Which costs will change with a decrease in activity within?

Which costs will change with a decrease in activity within the relevant range? Unit fixed costs and total variable cost.

Which cost will decrease with an increase in activity within the relevant range?

Terms in this set (55) If the level of activity increases within the relevant range then the fixed cost per unit will decrease. If the level of activity increases within the relevant range then the total cost per unit will increase.

What happens when activity level decreases?

Fixed costs: If there is an increase in the activity level, then the fixed cost per unit decreases and if there is a decrease in the activity level then the fixed cost per unit increases.

How does the fixed cost per unit change as the level of activity decreases?

Within the relevant range, total fixed costs remain constant. Regardless of the level of activity, the business pays the same. However, the fixed cost per unit changes as the level of activity changes. As more units are produced, the fixed cost per unit decreases.

Which of the following cost behaviors does not change in total?

fixed cost
Answer: This cost behavior pattern is called a fixed cost. A fixed cost describes a cost that is fixed (does not change) in total with changes in volume of activity. Assuming the activity is the number of bikes produced and sold, examples of fixed costs include salaried personnel, building rent, and insurance.

What is the change in cost due to change in activity from one level to another?

Question: Costs that vary in total with changes in activity are called variable costs.

What increases breakeven point?

The break-even point will increase when the amount of fixed costs and expenses increases. A company with many products can see its break-even point increase when the mix of products changes. In other words, if a greater proportion of lower contribution margin products are sold, the break-even point will increase.

Which of these costs will increase or decrease with increase in production?

Variable cost increases continuously with the increase in production.

What will happen to variable costs when the level of activity decreases?

Hence, the total variable cost will decrease when the level of activity decreases, and the total variable cost will increase when the level of activity increases. However, the variable cost per unit will remain constant.

What increases when activity level increases?

What happens when activity level increases? total variable cost increases AND variable cost per unit remains constant. total fixed cost remains constant AND fixed cost per unit increases.

Which is costs will change with a decrease in activity?

Which costs will change with a decrease in activity within the relevant range? A) Total fixed costs and total variable cost. B) Unit fixed costs and total variable cost. C) Unit variable cost and unit fixed cost. D) Unit fixed cost and total fixed cost. Fixed costs expressed on a per unit basis: A) increase with increases in activity.

How are variable costs defined within the relevant range?

Within the relevant range, variable costs can be expected to: A) vary in total in direct proportion to changes in the activity level. B) remain constant in total as the activity level changes. C) increase on a per unit basis as the activity level increases. D) increase on a per unit basis as the activity level decreases.

Which is variable costs will change with a question?

D) increase on a per unit basis as the activity level decreases. Which costs will change with a Question: Within the relevant range, variable costs can be expected to: A) vary in total in direct proportion to changes in the activity level.

What does sales less variable production expense mean?

Sales less variable production, variable selling, and variable administrative expenses. c. Sales less variable production expense. d. Sales less all variable and fixed expenses. b. Sales less variable production, variable selling, and variable administrative expenses.