Cost remain constant on a per-unit level as the level of activity changes are called
Which of the following describes the behavior of the variable cost per unit?
Remains constant with changes in production
Costs that vary in total in direct proportion to changes in total activity level are called
Which of the following is an example of a cost that varies in total as the number of units changes
Direct materials costs
As production increases, what would you expect to happen to fixed costs per unit?
Which of the following statements is true regarding fixed and variable costs
Fixed costs are fixed in total, and variable costs are fixed per unit
Which of the following describes the behavior of the fixed cost per unit?
Decreases with increasing production
Knowing how costs behave is useful to management for all the following reasons EXCEPT for
predicting customer demand
As production increases, what should happen to the variable costs per unit?
stay the same
In cost-volume-profit analysis, all costs are classified into following two categories:
variable costs and fixed costs
The contribution margin ratio is
the same as the profit- volume ratio
Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit
Contribution margin ratio
Which of the following conditions would cause the break-even point to decrease
unit variable cost increases
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