0
a cost caused by the production or acquisition
of a single unit of product or the delivery of a single
unit of service
What else can I help you with?
What is unit-level cost?
a cost caused by the production or acquisitionof a single unit of product or the delivery of a singleunit of service
The fixed cost per unit varies with changes in the level of activity?
false
Variable costs per unit will increase as production decreases.?
Variable cost per unit remains same with level of production and no change in change in level of production.
What describes a fixed cost?
It remains the same per unit regardless of activity level
What is a cost which remains constant in total regardless of the change in the activity leve but on a per unit basis it varies with the level of activity is called a?
This type of cost is known as a fixed cost. Fixed costs remain constant in total regardless of changes in the level of activity, such as rent or salaries. However, when expressed on a per unit basis, these costs vary inversely with the activity level; as production increases, the fixed cost per unit decreases, and vice versa.
What is unit-level cost?
a cost caused by the production or acquisitionof a single unit of product or the delivery of a singleunit of service
What are non unit level overhead activities?
One example of non unit level overhead cost is the cost of business consulting. Another example is paying the CEO. These costs can't be linked to a direct product.
The fixed cost per unit varies with changes in the level of activity?
false
How do you calculate the holding cost in the Economic Order Quantity (EOQ) model?
The holding cost in the Economic Order Quantity (EOQ) model is calculated by multiplying the holding cost per unit by the average inventory level. The holding cost per unit is the cost to store one unit of inventory for a certain period of time, and the average inventory level is half of the order quantity.
Variable costs per unit will increase as production decreases.?
Variable cost per unit remains same with level of production and no change in change in level of production.
What describes a fixed cost?
It remains the same per unit regardless of activity level
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
What is the significance of the price equaling marginal cost in determining the optimal level of production for a firm?
When the price equals the marginal cost, it indicates that the firm is producing at an optimal level where the cost of producing one more unit is equal to the revenue gained from selling that unit. This helps the firm maximize its profits and operate efficiently.
As activity decreases what happen with unit variable cost?
As activity decreases, unit variable costs typically remain constant since they are incurred on a per-unit basis regardless of the level of production. However, if production falls below a certain level, fixed costs may become spread over fewer units, potentially increasing the overall unit cost. In essence, while variable costs per unit do not change with activity levels, the total cost per unit can rise due to the allocation of fixed costs.
An increase in the activity level within the relevant range results in?
A decrease in fixed cost per unit
Fixed costs expressed on a per unit basis vary inversely with changes in activity True or false?
True, because when fixed costs are viewed on a per unit basis and as activity level rises we will see a decrease in the average cost. Conversely, fix costs increases per unit as the activity level falls. An example would be the $10,000 rental cost on a machine that assembles 5,000 units which has an average cost of $2/ per unit. Conversely, if the machine only produces 2500 units the average cost will be $4/ per unit.
What is the difference between sales price and variable costs?
Sales price is the price at which unit of product is sold while variable cost is that cost of unit which in manfuacturing process varies with change in level of production directly.
