A variable cost remains constant per unit at various levels of activity.

StratCost_CVP

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Other
•
University
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Medium
Eliza Cesista
Used 1+ times
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20 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
True
False
2.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
A fixed cost remains constant in total and on a per unit basis at various levels of activity.
True
False
3.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
If volume increases, all costs will increase
True
False
4.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite directions.
True
False
5.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
For CVP analysis, both variable and fixed costs are assumed to have a linear relationship within the relevant range of activity.
True
False
6.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The relevant range of activity is the activity level where the firm will earn income.
True
False
7.
MULTIPLE CHOICE QUESTION
45 sec • 1 pt
The high-low method is used in classifying a mixed cost into its variable and fixed elements.
True
False
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