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Variable cost fluctuates in total as activity changes but remains constant on a per unit basis over the relevant range true or false?
Wiki User
∙ 13y ago
true
Wiki User
∙ 13y ago
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Will total variable costs increase if the level of activity increases within the relevant range?
yes
Which cost will change with a decrease in activity within relevant range?
unit fixed costs and total variable cost
Which costs will change with an increase in activity within the relevant range?
Unit Fixed Cost and Total Variable Cost Kenny Kalejaiye
What are the steps to developing a flexible budget?
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.
Relevant range of activity?
The relevant range of activity refers to a the current level of production. If production drops or increases, then the relevant range will change.
A is a fixed cost b is a variable cost. during the current year the level of activity has decreaed but is still within the relevant range. we would expect that?
A remains constant and B decreases. profit decrease
Will total variable costs increase if the level of activity increases within the relevant range?
yes
Which cost will change with a decrease in activity within relevant range?
unit fixed costs and total variable cost
Which costs will change with an increase in activity within the relevant range?
Unit Fixed Cost and Total Variable Cost Kenny Kalejaiye
What is a variable for the number 9?
There is no relevant variable.
What are the steps to developing a flexible budget?
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.
Is variable cost a relevant cost?
No. If a variable cost does not differ between alternatives than it is irrelevant.
Relevant range of activity?
The relevant range of activity refers to a the current level of production. If production drops or increases, then the relevant range will change.
Variable costs are relevant and fixed costs are irrelevant?
Generally variable costs are relevant costs but if due to any decision fixed costs are also going to affected then fixed costs are also relevant costs.
Define relevant range in accounting?
an increase or decrease on a company's fixed costs is however not only dependent on the relevant period but also on the relevant production range. The total fixed costs will remain constant if the relevant production range can be handled by the same number of production units, producing fewer steps. If a certain step ( certain cost level) encompasses the entire relevant range of activity, the costs are entirely fixed.
What is the definition of constant variable?
The definition of constant variable is a variable whose value cannot be changed once it has been assigned a value for an experiment. It is the variable held steady, or constant, for a specific experiment.
Why relevant range important?
outside the relevant range, variable cost and fixed cost behaviors patterns may change
