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Q: A variable cost changes in proportion to changes in the volume in activity?
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Continue Learning about Accounting

When cost relationships are linear total variable prime costs will vary in proportion to changes in?

Volume of Production


What is curvilinear cost in accounting?

A Curvilinear cost is a cost that changes with volume(activity) but not at a constant rate.


What is step cost?

A step cost is a cost that does not have steady changes. While many costs have changes that result in activity volume, a step cost does not.


If the controllable overhead variance is favorable the overhead volume variance?

volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.


When using a flexible budget a decrease in activity within the relevant range does what?

I wanted to get this answered more fully, and correctly. Decreasing variable costs per unit is just wrong. When speaking of variable vs fixed costs, it means in total. A variable cost stays the same per unit, but as volume changes, the total variable costs increase and decrease. (Unless something specifically mentions there's a change per unit.) A fixed cost is fixed in total regardless of volume. But fixed per unit increases and decreases with volume changes. In order for variable and fixed to have their proper meanings, you have to think about them as total costs. For example, if I buy a certain shirt for $7 and sell it for $15, those are variable. They stay the same per unit and I gross $8 per shirt (called contribution margin). The more I sell, the more sales revenue I have and the more variable cost I have -- two shirts will have $7x2 ($14) of variable costs etc. If my fixed costs are $100,000, that will remain fixed regardless of how many of anything I sell. An example of a fixed cost is rent. If activity decreases, total variable costs will decrease, but not per unit variable costs. Total costs also decrease, but that's not complete. And fixed per unit increases, because you don't have as much volume to spread the fixed costs over.

Related questions

When cost relationships are linear total variable prime costs will vary in proportion to changes in?

Volume of Production


What is fixed costs plus variable costs?

Fixed costs are costs that DO NOT change in response to changes to activity levels.Variable costs are costs that change in proportion to changes in volume or activity.It's simple, you just have to remember:Fixed cost:Total - DO NOT changePer unit -CHANGES (usually, decrease)Variable cost:Per unit - SAMETotal -CHANGES


What is the dependent variable in an experience that shows how the volume of the gas changes with changes in temperature?

The volume of gas


What is the dependent variable in experiment that shows how the volume of gas changes with changes in temperature?

The volume of gas


Example of inverse proportion?

Example of inverse proportion is: Density = Mass/Volume Because the formula represents that the density is directly proportional to the mass while density is inversely proportional to volume. Remember that inversely proportional means that if variable A increases, the variable B decreases, and if variable B increases, the variable A decreases.


What is the dependent variable that shows how the volume of gas changes with changes in temperature?

The volume of gas


What is the dependent variable in an experiment that shows how the volume of gas changes with the temperature?

The volume of gas


What is the dependent variable in a experience that shows how the volume of gas changes with changes in temperature?

Assuming that the questioner meant "experiment" where "experince"* was written, the volume of gas is the dependent variable and temperature is the independent variable.*The French word for "experiment" is "experience".


What is the dependent variable in an experiment that shows how the volum of gas changes with changes in temperature?

VolumeThe independent variable is the one you determine, and the dependent variable is the one you measure. In this case, you choose the temperature, and measure the volume.


How would you describe a variable cost?

There are a number of costs that vary or change, but if the variation is not due to volume changes, it is not considered to be a variable cost.


Variable costs are conventionally deemed to?

Vary per unit of output as production volume changes.


What is the density of 300 milliliters of water with 108 milliliters of water?

The density of water does not change when the volume changes. This is because density is a proportion of weight to volume. The density of water changes with temperature, but is approximately 1g/ml.