Which of the following costs changes in direct proportion to a change in the activity?
cost approximation. Which of the following costs changes in direct proportion to a change in the activity level? A. Variable cost.
Which of the following costs changes in direct proportion to a change in the output level?
Answer and Explanation: Option (A) Variable cost is the correct answer . As the level of the production activity changes (increases or decreases), the variable cost will…
Which of the following costs are expenses that change in proportion to the activity of a business?
A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company's production or sales volume—they rise as production increases and fall as production decreases.
Which of the following is a cost that changes as the level of activity changes?
Variable costs are costs that remain constant on a per-unit basis as the level of activity changes. Variable costs are costs that vary in total in direct proportion to changes in the activity level.
What costs do not change in direct proportion with activity levels?
Fixed costs are costs that do not change when the activity base fluctuates. Variable costs vary in direct proportion to a change in an activity base.
Which cost change in direct proportion to the sales they increase with the increase in sales?
Answer and Explanation: The correct answer to the given question is option C. variable cost.
When a cost changes in total in direct proportion to changes in volume it is?
Answer and Explanation: A cost that changes in proportion to changes in volume of activity is called c) a variable cost. Variable costs are those tied directly to production…
Which of the following cost will not change with the change in activity level?
A fixed cost is an unavoidable operating expense that does not change in total over the short term, even if a business experiences variation in its level of activity.
What are the direct costs in accounting?
A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct costs examples include direct labor and direct materials.
What kind of cost is directly proportional to the volume of activity?
Answer and Explanation: A cost that changes in proportion to changes in volume of activity is called c) a variable cost. Variable costs are those tied directly to production… See full answer below.
Which of the following costs have a direct relation with the output of the business?
Variable costs are also referred to as prime costs or direct costs as it directly affects the output levels.
Which among the following is a type of cost which changes in proportion to volume of production?
Answer and Explanation: A cost that changes in proportion to changes in volume of activity is called c) a variable cost.
What are examples of direct costs?
Although direct costs are typically variable costs, they can also include fixed costs….Some examples of direct costs are listed below:
- Direct labor.
- Direct materials.
- Manufacturing supplies.
- Wages for the production staff.
- Fuel or power consumption.
Which of the following is direct cost answer?
Answer: The correct answer to this question is Direct labor, direct materials, commissions, piece-rate salaries, and manufacturing supplies are a few examples of direct costs.
What is it called when total cost changes in direct proportion changes in volume?
Answer and Explanation: A cost that changes in proportion to changes in volume of activity is called c) a variable cost. Variable costs are those tied directly to production…
Which of the following is not a direct cost?
Insurance cost is not a direct cost. Explanation for the answer: Direct costs are related to producing a good or service. In simple words, Direct cost is a cost which is directly associated with the product.
Which of the following is not a direct expense?
Audit fees Was this answer helpful?
Which are direct costs?
What are direct costs? Direct costs are expenses that a company can easily connect to a specific “cost object,” which may be a product, department or project. This category can include software, equipment and raw materials. It can also include labor, assuming the labor is specific to the product, department or project.
Which cost is direct cost?
Key Takeaways. A direct cost is a price that can be directly tied to the production of specific goods or services. A direct cost can be traced to the cost object, which can be a service, product, or department. Direct costs examples include direct labor and direct materials.
Which cost change in direct proportion to the sales they increase with increase in sales?
Answer and Explanation: The correct answer to the given question is option C. variable cost. The total variable cost is the cost which increases or decreases in proportion…
What is included in direct costs?
What are direct costs? Direct costs are expenses that a company can easily connect to a specific “cost object,” which may be a product, department or project. This category can include software, equipment and raw materials. It can also include labor, assuming the labor is specific to the product, department or project.
Which of the following is a direct cost?
Examples of direct costs are direct labor, direct materials, commissions, piece rate wages, and manufacturing supplies.
Which expenses are direct expenses?
Difference Between Direct and Indirect Expenses
| Direct Expenses | Indirect Expenses |
|---|---|
| Examples: Rent, Raw Materials, Cost of land, machinery, factory | Examples: Electricity and water bills, salary and wages of employees, utilities and overhead expenses |
•Jul 15, 2021
Which of the following is not direct cost?
Insurance cost is not a direct cost. Explanation for the answer: Direct costs are related to producing a good or service. In simple words, Direct cost is a cost which is directly associated with the product.
What is direct cost quizlet?
Direct Cost. A cost that can be conveniently and easily traced to a cost object.
What are direct expenses examples?
Examples of Direct Expenses are royalties charged on production, job charges, hire charges for use of specific equipment for a specific job, cost of special designs or drawings for a job, software services specifically required for a job, travelling Expenses for a specific job.
What are examples of other direct costs?
Other Direct Costs means those grant costs that can be directly identified as grant-related. These include travel, equipment, supplies, postage, advertising, computer charges, telecommunications, office lease and utility costs, vehicle charges, printing, and conference and training registration.
What are direct costs in accounting?
Direct costs are the expenses a business incurs directly to make a product or service, or buy a wholesale product for resale. (All other costs are considered to be indirect costs.)
Which of the following is an example of a direct cost?
Examples of direct costs are consumable supplies, direct materials, sales commissions, and freight.
What are direct costs give examples?
Direct costs are costs related to a specific cost object. A cost object is an item for which costs are compiled, such as a product, person, sales region, or customer. Examples of direct costs are consumable supplies, direct materials, sales commissions, and freight.