Question

What determines the difference between a variable and a fixed cost? Multiple Choice Whether the total cost is relevant to a particular decision. Whether the total cost is related to manufacturing or nonmanufacturing activities. Whether the total cost can be traced to a specific cost object. Whether the total cost changes when activity levels change.

Answer 1

Answer:

Whether the total cost changes when activity levels change.

Explanation:

Variable costs differs based on the amount of output that is produced, while in the case of the fixed costs the costs are the same no matter the output of production. The writer here is trying to determine the difference between variable costs and fixed cost in these scenario using the total cost changes when activity levels change.

Answer 2

Answer: Whether the total cost changes when activity levels change.

Explanation:

fixed costs are costs that remain the same regardless of the level of production or services offered and variable costs production costs that change when production levels change. the difference I fixed cost stays the same and variable costs can change.

The difference between fixed and variable costs is that fixed costs do not change with activity volumes, while variable costs are closely linked to activity volumes. Thus, fixed costs are incurred over a period of time, while variable costs are incurred as units are produced.

Fixed Cost is definite; it will incur even when there is no units are produced. ... On the other hand, variable cost remains constant per unit. Examples of fixed costs are rent, tax, salary, depreciation, fees, duties, insurance, etc. Examples of variable costs are packing expenses, freight, material consumed, wages, etc.

the difference between a variable and a fixed cost can be deduced Whether the total cost changes when activity levels change.