The term variable refers to the behavior of total fixed cost. a. True b. False

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

a. True

b. False

Cost:

In the manufacturing unit, the cost includes all the fixed costs and the variable costs to calculates the net income of the company. The rent is the fixed cost and the direct material is the variable cost in the manufacturing company.

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Fixed Cost | Overview, Formula & Examples

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Chapter 3 / Lesson 14

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What is a fixed cost? Learn the fixed cost definition and how to calculate it using the fixed cost formula. Compare fixed vs. variable costs and see fixed costs examples in business.

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There is a fixed cost element in ending inventory using the variable costing approach. True or false?
True or false? A variable cost is a cost that varies per unit of product, whereas a fixed cost is constant per unit of product.
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Variable costs change in direct proportion to a change in the activity level. a. True b. False
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Total variable costs increase as the volume of activity increases. True False
While the total amount of variable cost changes with the level of production, variable cost per unit remains constant as volume changes. a. True b. False
Mixed costs include both fixed and variable components. a. True b. False
Since fixed costs remain substantially unchanged, the operating budget presents only variable cost data. a) True b) False
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The term ''market'', as used in the expression "lower-of-cost-or-market", means replacement cost not retail price. (True/False)
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The term variable refers to the behavior of total fixed cost. a. True b. False

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