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Fixed costs expressed on a per unit basis vary inversely with changes in activity True or false?
Wiki User
∙ 15y ago
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.
Wiki User
∙ 15y ago
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Does Fixed cost per unit increase as activity decreases and decrease as activity increases?
true.as fixed costs remain the same with change in activity, the per unit price of each unit changes inversely with activity level.rent is generally a fixed costs.if rent is $10,000, and 100 units are produced, then the per unit price is $10 with respect to rent.if rent is $10,000, and 200 units are produced, then the per unit price is $5 with respect to rent.thus, as we produced more units, or as the activity level went up, the average costs per unit decreased.
Is electricity cost a variable cost or a fixed cost?
It's a variable cost, as it changes with the change in activity level
What factors may cause a change in the market and fair value of fixed rate notes and bonds?
One of the key factors that can change the market and fair value of fixed rate notes and bonds is an increase or decrease in market interest rates. Even though a bond has a fixed rate, it's value is dependent on current yields in the market and the value of the bond will move inversely to interest rate changes.
Fixed cost per unit increases when?
when number of activity or units decreases
What is a cost that remains constant in a total at various levels of activity?
This is called a fixed cost.In economics, fixed costs, are business expenses that are not dependent on the level of goods or services produced by the business.
Does Fixed cost per unit increase as activity decreases and decrease as activity increases?
true.as fixed costs remain the same with change in activity, the per unit price of each unit changes inversely with activity level.rent is generally a fixed costs.if rent is $10,000, and 100 units are produced, then the per unit price is $10 with respect to rent.if rent is $10,000, and 200 units are produced, then the per unit price is $5 with respect to rent.thus, as we produced more units, or as the activity level went up, the average costs per unit decreased.
Fixed costs remain constant in total but vary inversely with changes in activity when expressed on a per unit basis?
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.Read more: Fixed_costs_expressed_on_a_per_unit_basis_vary_inversely_with_changes_in_activity_True_or_false
The fixed cost per unit varies with changes in the level of activity?
false
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.
Is electricity cost a variable cost or a fixed cost?
It's a variable cost, as it changes with the change in activity level
What is the difference between capacitor and battery?
CAPACITOR'S REACTANCE CHANGES WITH FREQUENCY WHEREAS A BATTERY'S RESISTANCE IS FIXED. ALSO BATTERY STORES ENERGY AND IS EXPRESSED IN UNITS AS AMPERE-HOURS, WHERE AS CAPACITOR STORES CHARGE AND AND IS EXPRESSED IN UNITS AS MICRO / NANO FARADS
How would you define fixed budget?
A fixed Budget is a financial plan that does not change through the budget period, irrespective of any changes from the plan in actual activity levels experienced .
What is fixed costs plus variable costs?
Fixed costs are costs that DO NOT change in response to changes to activity levels.Variable costs are costs that change in proportion to changes in volume or activity.It's simple, you just have to remember:Fixed cost:Total - DO NOT changePer unit -CHANGES (usually, decrease)Variable cost:Per unit - SAMETotal -CHANGES
Describe the behavior of unit fixed costs as the level of activity increases?
Unit Fixed Cost remain fixed up to certain range or level of activity and then it take a jump and then remain fixed for range of activity and this behaviour continues
A fixed pulley changes what force?
A fixed pulley changes the direction of the force.
Examples of fixed expenses?
Here is a common definition: Fixed costs are those that do not fluctuate with changes in production activity level or sales volume, such as rent, insurance, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and advertising.
What factors may cause a change in the market and fair value of fixed rate notes and bonds?
One of the key factors that can change the market and fair value of fixed rate notes and bonds is an increase or decrease in market interest rates. Even though a bond has a fixed rate, it's value is dependent on current yields in the market and the value of the bond will move inversely to interest rate changes.
