When a cost base does not change regardless of the activity the cost is a fixed

Question

When a cost base does not change regardless of the activity the cost is a fixed cost.

True

False

1 points   

QUESTION 2

Fix cost does not remain consistent when activity changes.

True

False

1 points   

QUESTION 3

Fixed cost per unit is not fixed.

True

False

1 points   

QUESTION 4

A fixed cost represents a commitment to an economic sacrifice.

True

False

1 points   

QUESTION 5

Total variable costs increases in direct proportion to the activity.

True

False

1 points   

QUESTION 6

Variable cost per unit remains constant regardless of the activity.

True

False

1 points   

QUESTION 7

Variable cost structure produces a proportional relationship between sales and profitability.

True

False

1 points   

QUESTION 8

The term fixed refers to the behavior of total variable cost.

True

False

1 points   

QUESTION 9

The term variable refers to the behavior of total fixed cost.

True

False

1 points   

QUESTION 10

Mixed costs include both fixed and variable components.

True

False

Explanation / Answer

Answer 1. True Fixed Costs : cost that remains constant, in total, regardless of changes in the level of activity Answer 2. False Fixed Cost will remain Constant regardless of the activity. Answer 3. True Total Fixed will remain cosntant. With the change in activity or production the Fixed Cost per unit will Increase with decrease in production or vice a versa. Answer 4. True The acquisition cost of a fixed asset is the economic sacrifice to acquire the asset and make it ready to be used in an activity. It would include the purchase price and any other required expenses such as broker fee’s, registration procedures, and freight. As per Chegg Guidelines, we can answer only one question at a time having four subparts. For other parts please ask it again.

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