Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following statements about variable costs is true?

Variable costs remain constant in total regardless of activity level.

Variable costs are not affected by changes in production volume.

Variable costs change in total in direct proportion to changes in activity level.

Variable costs per unit increase as production increases.

Previous problemNext problem

Verified step by step guidance

Understand the concept of variable costs: Variable costs are costs that change in total in direct proportion to changes in activity level or production volume. Examples include direct materials and direct labor costs.

Analyze the first statement: 'Variable costs remain constant in total regardless of activity level.' This is incorrect because variable costs fluctuate based on activity level.

Evaluate the second statement: 'Variable costs are not affected by changes in production volume.' This is also incorrect because variable costs are directly tied to production volume.

Examine the third statement: 'Variable costs change in total in direct proportion to changes in activity level.' This is correct because it aligns with the definition of variable costs.

Review the fourth statement: 'Variable costs per unit increase as production increases.' This is incorrect because variable costs per unit remain constant regardless of production volume, while the total variable cost changes with activity level.