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Unit Fixed Cost and Total Variable Cost

Kenny Kalejaiye

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14y ago

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Related Questions

Will total variable costs increase if the level of activity increases within the relevant range?

yes


An increase in the activity level within the relevant range results in?

A decrease in fixed cost per unit


Which cost will change with a decrease in activity within relevant range?

unit fixed costs and total variable cost


What happens as the level of activity decrease within the relevant range?

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.


What happens Cost driver activity level increases within the relevant range?

total fixed costs remain unchanged


How does pressure change as you increase in altitude within your atmosphere?

it decreases


How would you describe total fixed costs?

Total fixed costs do not vary as volume levels change within the relevant range.


Biologic activity can change the amount of what?

Biologic activity can change the amount of proteins, enzymes, hormones, or neurotransmitters in an organism. These changes can have significant impacts on biochemical pathways, signaling processes, and overall physiological functions within the body.


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.


A cost increases or decreases in intervals as activity changes?

This scenario likely represents a step-variable cost behavior, where costs remain constant within certain activity levels before increasing or decreasing in response to a change in activity. This type of cost behavior is characterized by step changes in costs instead of a continuous increase or decrease. Organizational decisions may need to account for these step changes when forecasting or managing costs.


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


What is intra activity?

Intra activity refers to activities within businesses. Intra activity can also refer to activities within a particular department in businesses.