Question 461 ptsCosts that vary depending on the number of units produced or sold are referred to as fixed costs.Group of answer choicesfalsetrue PreviousNext

45.A change in total cost caused by adding one more unit to the production total is called:  A. Fixed cost.  B. Variable cost.  C. Marginal cost  D. Total cost

A cost, that in total, is dependent on how many units are purchased or sold.Select answer from the options belowFixed costsVariable costsProfit costsQuantity costs

If a company increases production without any increase in fixed costs:Group of answer choicesUnit total cost will increase.Fixed cost per unit will increase.Variable costs per unit will decrease.Gross margin per unit will increase when the units are sold.

A firm has a production capacity of 20,000 units. When 10,000 units are produced, fixed costs are $16 per unit. Therefore, when 20,000 units are produced fixed costs will_______:Question 9Select one:a.remain at $16 per unitb.increase to $32 per unitc.total $320,000d.decrease to $8 per unit

Choose the correct term from the options provided to match the following descriptions:Costs that remain constant regardless of the number of units produced and sold.Answer 1The total gain or loss on an investment over a given period.Answer 2An inventory that was purchased with the intention to sell it again in unaltered form.Answer 3The costs relating to the preparation and processing of purchasing documentation, as well as receiving and inspecting purchased items.Answer 4The term used where the remuneration paid to employees could vary from one period to the next.Answer 5The company’s plan that will contain statements about its mission, vision, values, key strategies and long-term objectives.Answer 6The manufacturing costs that we can easily trace to the products manufactured.Answer 7A factory’s average level of activity for meeting the company’s production demands, considering expected interruptions and seasonal fluctuations.Answer 8This method treats all manufacturing costs (i.e. direct materials, direct labour as well as fixed and variable factory overheads) as product costs.Answer 9The principle that an amount of money is worth more today than the same amount of money will be worth in the future.Answer 10