Unit Fixed Cost and Total Variable Cost
Kenny Kalejaiye
yes
A decrease in fixed cost per unit
unit fixed costs and total variable cost
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
total fixed costs remain unchanged
yes
A decrease in fixed cost per unit
unit fixed costs and total variable cost
Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range.
total fixed costs remain unchanged
it decreases
Total fixed costs do not vary as volume levels change within the relevant range.
slightly increasing the temperature within the optimum range
The flexible budget uses the master budget as its basis. To develop the flexible budget, management should take the following steps. 1. Identify the activity index and the relevant range of activity. 2. Identify the variable costs, and determine the budgeted variable cost per unit of activity for each cost. 3. Identify the fixed costs, and determine the budgeted amount for each cost. 4. Prepare the budget for selected increments of activity within the relevant range.
A remains constant and B decreases. profit decrease
Intra activity refers to activities within businesses. Intra activity can also refer to activities within a particular department in businesses.
A place value is relevant in the context of a single digit within a number. For a whole number it has no meaning. A place value is relevant in the context of a single digit within a number. For a whole number it has no meaning. A place value is relevant in the context of a single digit within a number. For a whole number it has no meaning. A place value is relevant in the context of a single digit within a number. For a whole number it has no meaning.