Only variable costs can be differential costs. Do you agree? Explain

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Q: Describe and apply the lower-of-cost-or-net realizable value rule.

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Q: What is meant by the phrase “different costs for different purposes”?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Distinguish between escapable and inescapable costs. Give an example of each.

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Q: Why is there a need to separate mixed cost as to variable & fixed cost?

A: Variable cost: these are the costs which vary with the units produced. These costs increase by…

Q: “Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree? Why?

A: A relevant cost refers to the cost amount which is related to a particular decision. Relevant cost…

Q: Define unavoidable fixed costs.

A: Unavoidable fixed costs are fixed costs which cannot be avoided by discontinuing a product line or…

Q: Is there a difference between relevant costs and incremental costs? Explain

A: Relevant cost: Relevant cost is the cost which is relevant in decision making of a project, and…

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

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 meant by an activity base when dealing with variable costs? Give several examples of…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: Describe variable costs and fixed costs and give an example of each.

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What does it mean to externalize costs?

A: Externalizing costs means generating profits by reducing the indirect costs by imposing them on…

Q: Explain an example of fixed cost.

A: Cost:   It is the economic value of resources incurred by an organization for producing a product or…

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: Describe and apply the lower-of-cost-or-market rule.

A: Cost:   It is the economic value incurred by an organization to produce a product or render a…

Q: Why is fixed costs changing?

A: In the given problem some estimates related to selling price and cost to be incurred are given and…

Q: In order to have differential costs, only variable costs are allowed. Do you think so? Explain.

A: In case of different alternatives available for production, the difference between two alternatives…

Q: Understand thedifferences between variablecosts and fixed costs.

A: Fixed costs are those costs which remain fixed regardless of output but variable costs are those…

Q: What is a fixed cost? A variable cost? A mixed cost? Give an example of each

A: Costs are the expenses incurred in business. It means costs incurred for the manufacturing of…

Q: What is one potential limitation of full-cost-based transfer prices?

A: Full cost based transfer pricing means transfer price based on total product cost per unit which…

Q: is a join le cost?

A: Given: To explain the joint cost and the separate cost as,

Q: 3. What do you mean by fixed cost and variable cost.

A: Costs: Costs are something that is incurred when a unit product is produced or when certain services…

Q: How can we determine the equivalent benefits as well as the equivalent costs.?

A: The annual cost of an asset maintenance before the replacement cost arises is known as equivalent…

Q: Do you agree from the following statements- Explain in details with examples 1.Variable costs are…

A: IntroductionProduction cost may be defined as that type of expenses which occurs during the…

Q: What is the primary advantage of separately allocating fixed and variable indirect costs?

A: Solution Concept Fixed cost               Fixed cost are those cost which does not change with the…

Q: 2. Give an example of cost which is a part of unavoidable cost.

A: An unforeseen expense is a short-term investment on which there is a definite budget commitment.…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.