Q: With reference to Bryony’s Pasta, distinguishbetween fixed costs and variable costs.
A: The total cost can be divided into two categories. Fixed cost: cost indicates the fixed and does…
Q: Which of the following may form the basis for the price a company (working at full capacity) should…
A: Opportunity costs : The benefit foregone by the company by employing the resource in other…
Q: “Sunk costs are considered by a manufacturer in decision making”. Do you agree? Explain.
A: "Sunk costs are considered by a manufacturer in decision making”. I do not agree with this…
Q: Does the concept of the relevant range apply to fixed costs? Explain.
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: Which of the following best describes a fixed cost? a. Cost representing a fixed proportion of…
A: Fixed Cost: It is a cost that does not change with the change in the level of output. It is the…
Q: How do you find the variable cost per unit produced and sold ?
A: First step in computing the variable cost of unit produce and sold is to analyse the nature of…
Q: What can be the Direct-Variable Costs? Explain. What can be the Direct-Fixed Costs? Explain. What…
A: Direct variable cost are those cost incurred in line with production or for a particular product or…
Q: Programmed costs are also known as O sunk costs O differential costs O standard costs Omanaged costs
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: What is the relevant range? What role does the relevant range concept play in explaining how costs…
A: Relevant range refers to the level of the activity which represents the maximum and minimum limits…
Q: What is a fixed cost? Give an example.
A: Fixed Cost: Fixed costs are those costs which remain unchanged even there is a change in the…
Q: What effect does an increase in volume have on—c. Total fixed costs?
A:
Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…
A: Marginal cost refers to the additional cost.
Q: What do you mean when you say "fixed costs"? What's the point? Is it possible to have a combined…
A: Introduction: Costs are the costs that a company incurs when it is in operation. It includes the…
Q: What is the relevant range? How does fixed costs and variable costs behave outside the relevant…
A: Relevant range refers to the level of the activity which represents the maximum and minimum limits…
Q: Which of the following best describes a fixed cost? A. Increase proportionately with output. B.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Which one of the following is an example for variable cost? O a. Salary with commission O b.…
A: Variable cost is a cost that keeps on changing with the changes in the level of activity.
Q: Which of the following costs has no relationship with the level of output? a) Semi-variable costs.…
A: Semi variable and variable costs has a direct relationship with the level of output. Stepped fixed…
Q: Direct costs can be referred to as fixed costs. True or False?
A: Cost are divided into two parts which are, (1) Direct cost (2) Indirect cost Direct costs are the…
Q: B\ If the variable cost per la gorts fixed costs, and total costs if production is
A: solution given Variable cost 10 per unit Fixed cost of production 2000 Number…
Q: Which of the following is not a step st driver rate by the volume of cost w to reduce the costs of…
A: Explanation: Activity based costing is a costing technique where production is split into different…
Q: Which one of the following is another name for product costs? Select one: a. Direct costs b. Period…
A: Product cost means the cost of producing one unit of finished goods.
Q: 1-Why is it important to distinguish cost incurrence from locked-in cost? 2- How do companies…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Why might it be misleading to show the fixed costs on a per unit basis?
A: Fixed Costs are those costs that do not change in aggregate in relation to the level of production…
Q: What is the relationship among fixed costs, contribution margin, and thebreak-even point?
A: Fixed costs: These are the costs incurred by the organization irrespective of the volume of…
Q: 1. What is the net income under variable costing method? 2. What is the net income under absorption…
A: Variable costing means that inventory is valued at variable manufacturing cost and fixed cost is…
Q: 1) What is the assumption of cost structure? 2) Calculate contribution Margin
A: A company's overall expenses are comprised of both fixed and variable costs, and together they make…
Q: E is also known as: e of the options version costs ni-fixed cost tuating cost-
A: Cost is the total amount or expenditure which a company, an individual and a manufacturer incurred…
Q: If fixed costs increase, what would be the impact on the (a) contribution margin?
A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…
Q: Hi, How do you calculated variable production cost per unit?
A: Answer:Variable production cost per unit is calculated by dividing Total variable production costs…
Q: Describe how total fixed costs and unit fixed costs behave as the level of activity increases
A: Fixed costs are those costs that remain fixed irrespective of the level of activity.
Q: Discuss the relationship between fixed costs, variable costs and risk.
A: 1. Fixed cost Fixed assets are assets that are used in an organization for the purpose of long-term…
Q: How would you define fixed and variable product costs? How are these costs used in determining the…
A: Cost of production is the total cost involved in producing a particular volume of products. These…
Q: What happens to the total variable costs and the total fixed costs when the level of activity…
A: Formula: Total cost = Variable cost + Fixed cost Sum of both variable and fixed cost derives the…
Q: What are direct out-of-pocket costs
A: There are various types of costs, some of which may be reimbursed and others that may not be. Direct…
Q: What does the target full product cost include?
A: Definition: Target full product cost: The target cost is the maximum cost of a product that can…
Q: Explain the concept of relevant range and
A: Fixed costs refer to the expenses that do not increase or decline with changes in the company's…
Q: Which of the following do not increase or decrease when the volume of production changes? O a. Fixed…
A: Some cost do not get affected by the volume of production. It remains same at all the levels of…
Q: How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why?
A: Fixed cost refers to such overheads that are not directly related to the business and which do not…
Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: How do you get the variable cost per unit produced and sold?
A: Variable Cost per unit produced :To get this, we take the total of all the variable costs in the…
Q: What is the term used to describe costs that increase in steps? A. Variable costs B. Fixed costs…
A: Cost is referred as the essential part of the business or a company which looks after the costs such…
Q: How do companies determine target costs?
A: Identify the selling price using the market competitor.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard costThe contribution margin is the a. amount by which sales exceed total fixed cost. b. difference between sales and total cost. c. difference between sales and operating income. d. difference between sales and total variable cost. e. difference between variable cost and fixed cost.When using the total cost concept of applying the cost-plus approach to product pricing, what is included in the markup? Total costs plus desired profit Desired profit Total selling and administrative expenses plus desired profit Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
- Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs, or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is: Total Fixed Costs Break-even Units = Unit Selling Price-Unit Variable Cost In StratSim, total fixed costs can be broken into discretionary marketing expenditures, and fixed costs for plant and overhead. The selling price is the MSRP less the dealer discount, and the cost of materials and labor make up the variable cost. In this assignment, you will allocate fixed costs across a portfolio of products and calculate the break-even units for each product. A firm's production capacity is 1.5 million units, with annual fixed costs of $3.2 billion for depreciation, plant maintenance, corporate marketing, and general overhead. Additional values for the three vehicles…In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense line represents which of the following? Multiple Choice The break-even point The total fixed expenses The total variable expenses The total contribution marginWhen using the product cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup? Oa. total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit b. desired profit Oc. total costs plus desired profit Od. total selling and administrative expenses plus desired profit
- The major categories or captions that would appear on an income statement prepared in the variable costing format are as follows: Contribution margin Fixed costs Manufacturing margin Operating income Sales Variable cost of goods sold Variable selling and administrative expenses a. Arrange these captions in the proper order in accordance with the variable costing concept. b. Which of the captions represents: 1. The difference between sales and the total of all the variable costs and expenses. 2. The remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income?If a company chooses a price to charge for its product by adding up all the expenses necessary to make the product and then adding in a profit, this is known as: a) Target Costing Ob) Skimming Pricing Oc) Cost-Based Pricing Od) Odd-Even Pricing Oe) Penetration PricingVariable costing income will be greater than absorption costing income when: a. Sales is greater than production. b. contribution pricing is applied c. Production is less than or equal to sales. d. Production is greater than sales
- Cost-volume-profit analysis is used to make many decisions, including product pricing and controlling costs. What assumptions are used in cost-volume-profit analysis?Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable costing income statement calculates contribution margin. Both variable costing and absorption costing income statements calculate contribution margin. A variable costing income statement calculates gross profit; an absorption costing income statement calculates contribution margin. Both variable costing and absorption costing income statements calculate gross profit. I DON'T KNOW YETCost-volume-profit analysis is used to make many decisions, including product pricing and controlling costs. Are these assumptions always valid?