Purchase Solution

Fixed costs per unit increases as activity decreases

Not what you're looking for?

Ask Custom Question

Fixed cost per unit increases as activity decreases and decreases as activity increases.

True or False

Purchase this Solution
Solution Summary

The solution explains the correct alternative in relation to fixed cost per unit

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • Fixed Versus Fixed Cost Behavior (Lovvern Trophies)

    Variable cost (direct cost) is the cost that is fixed per unit of output but vary in total as output changes. It is the cost which changes or Increases or decreases with increase or decrease in volume.

  • Fixed versus variable cost behavior

    The solution explains how to calculate the total costs and also explains why the cost per trophy decreases as the number of trophies increases.

  • Managerial accounting on product costs and administrative costs

    C) The fixed cost per unit decreases when volume increases. D) The fixed cost per unit does not change when volume decreases. 03. Fixed cost per unit A) decreases as production volume decreases.

  • Multiple choice

    249559 Flexible budget/ Static budget When using a flexible budget, a decrese in activity within the relevant range: 1-decreases variable cost per unit 2-decreases total costs 3-increases totoal fixed costs 4-increases variable cost per unit A

  • Activity Based Costing - cost drivers

    Contribution Margin = sales - variable cost; as variable cost increases, CM decreases The solution looks at activity based costing.

  • Cost Volume Profit Analysis

    d) Total Fixed Costs. Those are fixed in total, but vary on a per unit basis depending on the level of activity.

  • Management accounting

    Fixed costs expressed on a per unit basis: will increase with increases in activity. will decrease with increases in activity. are not affected by activity.

  • CVP, Curvilinear costs, break even, operating range, target

    Total fixed costs remain the same regardless of volume. Total variable costs change with volume. Total variable costs decrease as the volume increases. Fixed costs per unit increase as the volume decreases.

  • Multiple Choice

    As the cost driver activity level decreases within the relevant range: a)total fixed costs increase b)fixed costs per unit decreases c)total variable costs decrease d)variable costs per unit decreases 2.

View More Related Solutions