Which of the following describes the behavior of the fixed cost per unit?


https/Ionline epoceduwwebappwassessment/take Maunchppi ?co D Take Test Accounting 2302-X QUESTION 20 Which of the following describes the behavior of the fixed cost per unir? O a Decreases with decreasing production O b Remains constant with changes in production Ocincreases with inaeasing production O d Decreases with increasing production QUESTION 21 Which of the following is an example of a cost that varies in total as the number of units produced changes? O a Direct materials cost Ob Straight-line depreciation on factory equipment Ocsalary of a production supervisor O d Property taxes on factory buildings QUESTION 22 Which of the graphs in Figure 18(3-1 ilustrates the nature of a miced cos? Total war ciek save and submit to save and submit. cack SaveAnAnswers to save allansvers.

Answer

Ans 20 d. Decreases with increasing production Fixed cost remains same at all the level of output as we increase output fixed cost per unit starts decreasing.
Fixed cost per unit = fixed cost ÷ no of units produced Ans 21 a. Direct Material Cost Director material cost varies in totality as the no of units produced changes. There is direct relationship between direct material cost and no of units produced.
All other options are incorrect Ans 22. Graph 2

Mixed cost are those cost which are fixed as well as variable. So, initially, there is component of fixed costs due to which graph starts from little upward. After that point, it start increasing due to variable component.

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