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ACC CH. 6-8
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Terms in this set (7)
If activity decreased fixed cost per unit
increase
Mixed decreases as
volume decreases
Assume "A" is a fixed cost and "B" is a variable cost. During the current year the level of activity has decreased, but is still within the relevant range. We would expect that:
the cost per unit of B has remained unchanged
cost is a cost whose total amount changes in direct proportion to a change in volume
variable
CM Ratio
CM/Sales
If the sale price per unit decreases and variable costs per unit remain the same, what will be the effect on the cm ratio
it will decrease
if the cm ratio increases
the variable cost ratio decreases
;