"Explain How To Balance Fixed And Variable Costs" Essays and Research Papers

Explain How To Balance Fixed And Variable Costs

Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost's reactions to activity level. A cost may rise, fall, or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided, often referred to as activity, utilization, or volume (Gapenski, 2012). When dealing with the future there is a level of uncertainty of volume with regard to...

Cost, Cost driver, Costs 888  Words | 3  Pages

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Fixed Costs, Variable Costs, and Break-Even Point

Assignment: Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500 $20,500. August 4,000 $22,600. September 4,200 $23...

Cost, Costs, Economics of production 480  Words | 3  Pages

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Hsm/260: Fixed Costs, Variable Costs, and Break

HSM/260: Fixed Costs, Variable Costs, and Break Fixed Costs, Variable Costs, and Break Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500...

Cost, Costs, Economics of production 625  Words | 3  Pages

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Costs and Total Variable Cost

can you conclude about the relationship between the slope of a curve and its elasticity? Explain in a nontechnical way why demand iselastic in the northwest segment of the demand curve and inelastic in the southeast segment. Product Price Quality Demanded $5 1 Vb 4 2 3 3 2 4 1 5 Answer: 1/1.5 / ¼.5= .67%/ 22%= 3.05 Ch 22 #7 1. Key Question A firm has fixed costs of $60 and variable costs as indicated in the table on the following page. Complete the table and check your calculations...

Costs, Economics of production, Fixed cost 424  Words | 3  Pages

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Variable Cost and Company

Section B Attempt Any Six Questions (6*5= 30) 1. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 2. Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units July. . . . . . . . . . . . . . 30,000 August . . . . . . . . . . . 45,000 September . . . . . . . . 60,000 October . . . ....

Balance sheet, Cash flow, Contribution margin 1030  Words | 5  Pages

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Variable Cost and Contribution Margin

CHAPTER 1 – COST VOLUME PROFIT- MULTIPLE CHOICE QUESTIONS 1. CVP analysis can be used to study the effect of:  A. changes in selling prices on a company's profitability. B. changes in variable costs on a company's profitability. C. changes in fixed costs on a company's profitability. D. changes in product sales mix on a company's profitability. E. All of these. 2. The break-even point is that level of activity where:  A. total revenue equals total cost. B. variable cost equals fixed cost. C. total...

Contribution margin, Cost, Costs 1377  Words | 7  Pages

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Hsm Week 4: Assignment: Fixed Costs, Variable Costs, and Break

Assignment: Fixed and Variable Costs, Break-Even Point Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? The variable cost of service is $3.93 during the fiscal year the WHDM should provide 1,011 meals to reach their...

Cost, Costs, Economics of production 545  Words | 3  Pages

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Microeconomics: Variable Cost

Microeconomics Topic 6: “Be able to explain and calculate average and marginal cost to make production decisions.” Reference: Gregory Mankiw’s Principles of Microeconomics, 2nd edition, Chapter 13. Long-Run versus Short-Run In order to understand average cost and marginal cost, it is first necessary to understand the distinction between the “long run” and the “short run.” Short run: a period of time during which one or more of a firm’s inputs cannot be changed. Long run: a period of time during which...

Average cost, Cost, Cost curve 1833  Words | 6  Pages

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Absorption and Variable Costing

ABSORPTION AND VARIABLE COSTING Learning Objectives 1. Explain the accounting treatment of fixed manufacturing overhead under absorption and variable costing. 2. Prepare an income statement under absorption costing. 3. Prepare an income statement under variable costing. 4. Reconcile reported income under absorption and variable costing. 5. Explain the implications of absorption and variable costing for cost-volume-profit analysis. 6. Evaluate absorption and variable costing. ...

Contribution margin, Cost, Costs 787  Words | 5  Pages

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Variable Costs

2 1. Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping. 3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual costs for August. 4. Estimate...

Apple Inc., Cost, Costs 460  Words | 3  Pages

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Variable Cost

Running head: VARIABLE COSTS Variable Costs ACC/561 June 12, 2012 Variable Costs Any cost which is not fixed and will change in same amount when there is change in production volume is accounted as variable costs. This also means that they change in total rather than per unit whenever there is production or activity change. In production- labor, material or overhead could be the variable costs involved in the business. In Fitness center, there are different variable costs involved and each...

Business, Cost, Costs 783  Words | 3  Pages

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Explain the difference between fixed costs, semi-fixed costs, and variable costs.

Question 5.1 Explain the difference between fixed costs, semi-fixed costs, and variable costs. Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line depreciation expense, etc. Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line...

Cost, Costs, Depreciation 333  Words | 2  Pages

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Variable Cost

 budgets. 3. The costs of direct materials are classified as:     A. Choice A B. Choice B C. Choice C D. Choice D 4. The three basic elements of manufacturing cost are direct materials, direct labor, and:  A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 5. 25. Prime cost consists of direct materials combined with:  A. direct labor. B. manufacturing overhead. C. indirect materials. D. cost of goods manufactured. ...

Cost, Costs, Economics of production 856  Words | 5  Pages

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Total Variable Costs

MODULE 2 1. To predict costs and manage them on a day-to-day basis, managers must identify: A. cost of resources used B. key activities and resources used to perform activities C. cost drivers D. all of the above 2. Cost drivers are ________. A. measures of activities that require the use of resources and thereby cause costs B. different types of functional areas in the firm C. different types of cost calculations D. the different functions in the value chain 3. Which of the following statements...

Costs, Fixed cost, Total cost 1424  Words | 5  Pages

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Variable Cost and Points Question

Question 1 1.   Mrs. Granberry is going to sell Christmas tree lights for $20 a box. The lights cost Marsha $5 a unit and any unsold lights can be returned for a full refund. She is planning to rent a booth at the upcoming Happy Holidays Convention, which offers three options: 1. paying a fixed fee of $1,500, or 2. paying a $500 fee plus 10% of revenues made at the convention, or 3. paying 25% of revenues made at the convention.Which of the following statements is FALSE? Answer | | One...

Contribution margin, Cost, Costs 1238  Words | 7  Pages

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Accounting: Variable Cost and New Equipment

follows. Cost Items and Account Balances $ Administrative salaries 15,500 Advertising for helmets 11,000 Cash , December 1 0 Depreciation – Factory Building 1,500 Depreciation – Office Equipment 800 Insurance – Factory Building 1,500 Miscellaneous expenses - Factory 1,000 Office supplies expense 300 Professional Fees 500 Property Taxes - Factory Building 400 Raw material used 70,000 Rent on production equipment 6,000 Research & development 10,000 Sales commission 40,000 Utility Costs - Factory...

Contribution margin, Cost, Costs 665  Words | 4  Pages

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Variable Cost and Contribution Margin

Payable 1,130 11,180 Net Cash Flows from Operating Activities P153,850 COST VOLUME PROFIT 1. Melanie Company produces a merchandise that has the following data: Unit Sales price P80 per unit Unit vairiable costs P48 per unit Total fixes costs P640,000 per annum Units sold during the current year P25,000 units A. Unit contribution margin, contribution margin ratio and variable cost ratio. B. Breakeven point in units and in pesos. C. Margin of safety in units...

Contribution margin, Costs, Fixed cost 997  Words | 7  Pages

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Harrington: Cost and Variable Costs

Financial Analysis While doing the financial analysis it is important to calculate the unit price first. Using the wholesale price rather than the retail price, the calculated unit price is $95. Next, we sum up the start-up costs and operating costs, both fixed and variable, and use these numbers to calculate the breakeven units. After calculation, the breakeven point is 289,846 units. Appendix A shows the details of our process. Active-wear sales are expected to double by 2009, and 40% of those...

Contribution margin, Cost, Costs 1073  Words | 4  Pages

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Variable and Fix Cost

TUI University Variable and Fixed Cost Module 1 Case Dr. Li-Lin Liu Pa April 22, 2012 Part I: Use the background material and Internet to answer the questions below. Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to: * How is managerial accounting different from financial accounting? Comment on the different needs and use of financial information for internal purposes. * The managerial accounting profession and its role...

Accountancy, Business, Certified Management Accountant 648  Words | 3  Pages

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Midterm: Variable Cost

Prime cost. | B | Conversion cost. | C | Period cost. | D | Nonmanufacturing cost. | 2. | Prime cost and conversion cost share what common element of total cost? | A | Direct materials. | B | Direct labor. | C | Variable overhead. | D | Variable overhead. | 3. | On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period. | B | the amount of cost transferred...

Contribution margin, Cost, Costs 1266  Words | 7  Pages

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Variable Costing

VARIABLE COSTINGMorenike Onibon Liberty University Abstract Determining the actual valuation of manufactured assets has always been a major problem in the accounting field. The real controversy exist in the decision regarding which costs are relevant to future periods, and thus should be included in assets valuation, and which should not be charged against net income. An understanding of the relationship between costs, volume, and profit, enables management to set more realistic objectives for...

Cost, Cost accounting, Costs 1846  Words | 4  Pages

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Cost Volume Profit Analysis

COST – volume –profit analysis LEARNING OBJECTIVES Students should be able to: 1. Explain the nature of CVP Analysis and name and illustrate planning and Decision-making situations in which it may be used, 2. Separate semi-variable (mixed) costs into their fixed and variable components. 3. Construct profit/volume charts given selling price, costs and volume data. 4. Construct a cost/volume/profit (CVP) model representing the data in a marginal ...

Contribution margin, Costs, Economics of production 802  Words | 5  Pages

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Cost Accounting

Biyani's Think Tank Concept based notes Cost Accounting [ B.Com. Part-II] B.N. Gaur MBA, PGDBM, Lecturer Deptt. of Commerce & Management Biyani Girls College, Jaipur Fore more detail:- http://www.gurukpo.com Published by : Think Tanks Biyani Group of Colleges Concept & Copyright : ©Biyani Shikshan Samiti Sector-3, Vidhyadhar Nagar, Jaipur-302 023 (Rajasthan) Ph : 0141-2338371, 2338591-95 • Fax : 0141-2338007 E-mail : acad@biyanicolleges.org Website :www.gurukpo.com; www...

Cost, Costs, Economics 1759  Words | 6  Pages

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Cost of Production & different types of cost of production

Cost of Production Fixed costs are those that do not vary with output and typically include rents, insurance, depreciation, set-up costs, and normal profit. They are also called overheads. Variable costs are costs that do vary with output, and they are also called direct costs. Examples of typical variable costs include fuel, raw materials, and some labour costs. An example Production costs Consider the following hypothetical example of a boat building firm. The total fixed costs, TFC, include...

Average cost, Cost, Costs 667  Words | 7  Pages

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Variable Cost and Contribution Margin

term manufacturing overhead? | A) | Factory overhead | B) | Pervasive costs | C) | Burden | D) | Indirect manufacturing costs | 2. | Which one of the following is an example of a period cost? | A) | A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. | B) | Workers' compensation insurance on factory workers' wages allocated to the factory. | C) | A box cost associated with computers. | D) | A manager's salary for work that is...

Contribution margin, Costs, Inventory 836  Words | 5  Pages

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Cost Behaviour

Question: Explain why it’s important for most senior managers to have a sound knowledge of cost behaviour ie fixed costs, variable costs, semi-variable costs and sunk costs. Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production, sales, inventory pile up etc. It provides good assistance in planning, cost management and decision making. A number of behaviour patterns exist ranging from fixed to variable and...

Cost, Costs, Decision making 801  Words | 4  Pages

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How to use dummy variables

How to Work with Dummy Independent Variables Chapter 8 is devoted to dummy (independent) variables. This How To answers common questions on working with and interpreting dummy variables. Questions: 1) How to include dummy variables in a regression? 2) How to interpret a coefficient on a dummy variable? 3) How to test hypotheses with dummy variables and interaction terms? 4) How to create a double-log functional form with dummy variables? 5) How to interpret a coefficient...

Algebra, Constant, Econometrics 1267  Words | 7  Pages

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Explain how an organization can cost a product and determine its price at any activity level

will explain how a product price is determined and how this is calculated at the activity level of the product in the shop. - Costs can be divided into different concepts. Below I will explain those concepts and give an example of how it will work in practice. o Direct costs Direct costs are the costs that are directly linked to a cost object. You can also say, the costs that are made when making the product ready. All the costs of making the product ready for sale are the direct costs of the...

Cost, Costs, Employment 1084  Words | 4  Pages

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Homework: Variable Cost and Net Income

inventory. Costs involved in production are: Direct material $5 Direct labor $4 Variable manufacturing overhead $3 Total variable manufacturing costs per unit $12 Fixed manufacturing overhead cost per year $180,000 In addition, the company has fixed selling and administrative costs of $160,000 per year. Exercise 5-11. During the year, Summit produces 50,000 snow shovels and sells 45,000 snow shovels. What is the value of ending inventory using full costing? Fixed manufacturing...

Cost, Cost of goods sold, Costs 715  Words | 3  Pages

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Costs and Direct Labor Cost

following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machinehours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be: A. $4,571 B. $3,757 C. $3,090 D. $3,427 Applied manufacturing...

Cost, Cost accounting, Costs 1320  Words | 5  Pages

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Explain the Importance of Cost, Revenue and Profit for a Business Organisation

Unit 3 M1- explain the importance of cost, revenue and profit for a business organisation 1. Cost Profit is the different between the selling price and the production cost. Product cost include not only the cost of manufacturing a product but also all the other costs incurred in the process of producing or delivering a product or service. 2. Revenue The revenue of a business is, the income from its operations. It is important for the business to make the gap between costs and revenue...

Cost, Costs, Fixed cost 586  Words | 3  Pages

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Management Accounting - Cost Classification

COST CLASSIFICATION ASSIGNMENT To classify the various costs would first of all require a definition between the two types of accounting that practically all businesses have to face and a number of key terms which are equally important. These are management accounting and financial accounting. 1. THE DIFFERENCE BETWEEN MANAGEMENT & FINANCIAL ACCOUNTING: Management accounting is concerned with decision making, cost apportionment, planning and control. It is based within the organisation...

Cost, Costs, Economics of production 2254  Words | 7  Pages

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Domino: Variable Cost and Mr. Blanchard

offering a 20% discount to the corporate accounts, which is how they had built the business. He believed that he would need to do the same discounting. Mr. Blanchard was also very concerned with the profitability of this project. The store was run with a 30% profit margin, and management evaluations were based on maintaining this level of performance. Domino’s was best known for their super-deluxe pizza, and this pie was used to estimate costs. Ingredients averaged $2.25/pie. Additionally, new...

Contribution margin, Cost, Costs 510  Words | 4  Pages

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Variable or Fixed Cost

Being able to determine whether a cost is fixed or variable is vital to the understanding of overhead loading and cost behavior. A fixed cost is unchanged with a change to the cost driver. (Horngren, Sutton, and Stratton p.46) Which means that a fixed cost does not rise with the change is production of your product. A good example of a fixed cost is rent. No matter how many widgets you make (within a relevant range) your rent will not increase. A variable cost, on the other hand, does change with...

Activity-based costing, Costs, Economics of production 363  Words | 2  Pages

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Variable Cost and Net Operating Income

large company. Actual costs Static Incurred budget Activity level (in units) 800 750 Variable costs: Indirect materials $6,850 $6,600 Electricity $1,312 $1,275 Fixed costs: Administration $3,570 ...

Cost, Costs, Depreciation 601  Words | 4  Pages

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Variable Cost and Flexible Budget

called Jianye Ma, the plant controller, to request a summary of monthly operations for August as soon after the end of the month as possible. Danshui was a contract manufacturer that assembled electronic products for companies wishing to save labor costs by locating in southern China where semiskilled labor was available for less than one dollar an hour. Manufacturers like Danshui assembled parts in large plants using assembly line techniques according to specifications of the international companies...

App Store, Apple Inc., Costs 1735  Words | 6  Pages

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Qbr 501 Wk1 Order of Operations and Dependent and Independent Variables

Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of GDP per capita? CH-8.EX-11. Key Question If the CPI was 110 last year and is 121 this year, what is this year’s rate of inflation? What is the “rule of 70”? How long would it take for the price level to double if inflation persisted at (a) 2, (b) 5, and (c) 10 percent per year? According to McConnell and Brue, the rule of 70 is known to give the ability to find the number of years it will take for some...

Cost, Costs, Economics of production 1078  Words | 4  Pages

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Cost Is Fixed Cost or Variable Cost in Nature?

depreciation expense or depreciation cost is fixed cost or variable cost in nature? Fixed costs: Fixed costs are such costs that do not change with the change in activity level within the relevant range. Where relevant range can be defined in terms of time or activity level. Variable costs: Variable costs are such costs that change with the change in activity level . Coming to the question, depreciation expense or depreciation cost can either be fixed or variable and this depends on the method adopted...

Cost, Costs, Depreciation 560  Words | 2  Pages

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P1: Explain how an organisation can cost a product and determine its price at any activity level.

employer. For a product of your choice: 1. Clearly explain the main cost elements and the nature of those costs – define and give relevant examples of variable, fixed, semi-variable, direct and indirect costs 2. Suggest the weekly production level and a breakdown of costs for one product from your chosen business. Then calculate the marginal and absorption costs per unit. 3. Describe at least 2 methods of setting the price, including cost-plus pricing. Then suggest which method is best suited...

Cost, Costs, Economics 600  Words | 3  Pages

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Fixed Costs, Variable Costs, and Bep

Fixed Costs, Variable costs, and Break Even Point Elizabeth Gaud HSM /260 August 21, 2011 Stephanie Koontz Fixed Costs, Variable costs, and Break Even Point Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? Answer: ...

Addition, Cost, Costs 511  Words | 2  Pages

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M3.27 Working with Costs and Budgets

M3.27 Working With Costs and Budgets Explain the Importance of agreeing a budget and operating within it: A budget plan is the most effective way to keep the business and its finances on track. It gives you the opportunity to review the business’ performance and any factors that are affecting or may affect your business. Also to manage your money more effectively, allocate appropriate resources, monitor performance, meet planned objectives and plan for the future. To be most effective this...

Cost, Cost accounting, Costs 663  Words | 3  Pages

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Short Term Cost

I. Fixed inputs II. Variable inputs There 2 type of production of costs: I. Fixed costsFixed costs are those that do not vary with output and typically include rents, insurance, depreciation, set-up costs, and normal profit. II. Variables costsVariable costs are costs that do vary with output, and they are also called direct costs. SR PRODUCTION COST • Average fixed costs (AFC) ― the costs of fixed input per unit of output (AFC=TFC/Q) • Average variable costs(AVC) ― variables costs...

Average cost, Cost, Costs 1194  Words | 7  Pages

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Cost Accounting Text review

COST ACCOUNTING Sample Test Materials Chapters 1-4 Multiple Choice Select only one answer for each question. 1. At what point does depreciation on equipment used to produce a table become an expense? a. At the end of the period when the depreciation is recorded b. When the table is started c. When the table is completed d. When the table is sold 2. Which of the following describes an opportunity cost? a. The largest net benefit given up by choosing one action that precludes taking other actions...

Contribution margin, Cost, Costs 1087  Words | 4  Pages

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Balance Sheet and Labor Standard

is a Balance Sheet ? How does a Funds Flow Statement differ from a Balance Sheet ? Enumerate the items which are usually shown in a Balance Sheet and a Funds Flow Statement. 2 . (a) Discuss the importance of ratio analysis for inter-firm and intra-firm comparisons including circumstances responsible for its limitations .If any (b) Why do you understand by the term ‘pay-out ratio’? What factors are taken into consideration while determining pay-out ratio? Should a company follow a fixed pay-out...

Balance sheet, Costs, Economics 1438  Words | 7  Pages

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Equilibrium Monopoly and Difference Between Production and Selling Cost

a) Explain the difference between short-run equilibrium and long-run equilibrium in monopolistic competition. b) “Perfect competition is a more desirable market form than monopolistic competition.” Discuss. 01 24 11 Wednesday 7 November 2007 Paper 1: Short Run: When there is a Fixed cost, and only some of the variables chage Long Run: When there is no fixed cost, all the costs change (A) Assumptions Large number of firms – each firm has an insignificantly small share of the market. Independence...

Competition, Cost, Costs 1279  Words | 5  Pages

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cost accounting 2

1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21,000 - 15,000=6,000 units] Direct Material used 1,060,000 Variable Costs: Direct Labor 1,904,000 Direct material used [ 1,060,000 *1.4] 1,484,000 Unit costs [ 6,335,600 / 21,000] =$ 301.7 Indirect Materials and supplies 247,000 Direct Labor [ 1,904,000 * 1.4] 2,665,600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213,000 Indirect Materials...

Contribution margin, Cost, Costs 1819  Words | 3  Pages

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Cost Accounting: Test Questions

1 1. Explain the following terms: (DEC, 2010) 1. Direct Cost 2. Indirect Cost 3. Cost Object 4. Cost Driver 5. Cost Allocation 6. Cost Sheet 7. Semi variable cost 2. Write a detailed note on Target Costing. (DEC, 2010) 3. Write a note on methods of absorption of overheads. (DEC, 2010) 4. Write a note on classification of overheads. (DEC, 2010) 5. Write short notes on the following: i. Product Costs ii. Period costs iii. Out of pocket cost iv. Sunk Costs v. Opportunity...

Cost, Cost accounting, Costs 1209  Words | 4  Pages

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Variable Cost and Total Revenue Function

MATHEMATICS: ASSIGNMENT - “Section” 5.1, page 182. (1) Write the general form of a linear function involving five independent variables. (2) Assume that the salesperson in Example 1 (page 177) has a salary goal of $800 per week. If product B is not available one week, how many units of product A must be sold to meet the salary goal? If product A is unavailable, how many units be sold of product B? (3) Assume in Example 1 (page 177) that the salesperson receives a bonus when combined sales...

Automobile, Costs, Fixed cost 781  Words | 3  Pages

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Balance Sheet and Net Income

Statement | Balance Sheet |   Sales | $17,000   |   Assets | $13,127   |   Debt | $7,541   |   Costs | 11,730   |   |   |   Equity | 5,586   |     Net income | ------------------------------------------------- $5,270   |     Total | ------------------------------------------------- $13,127   |     Total | ------------------------------------------------- $13,127   | |   Phillips has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will...

Asset, Balance sheet, Generally Accepted Accounting Principles 840  Words | 6  Pages

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Variable Cost and Following Table

shipping cost per truckload sent to each warehouses, and the maximum amount that it can ship per month to each warehouse. From/To p1 p2 unit shipping cost Wh1 Wh2 $425 $560 $510 $600 From/To p1 p2 shipping capacities Wh1 Wh2 125 150 175 200 output 200 300 For each retail outlet (RO), the next table shows its monthly demand, its shipping cost per truckload from each warehouse, and the maximum amount that can be shipped per month from each warehouse. unit shipping cost From/To Wh1...

Costs, Marginal cost, Optimization 1959  Words | 6  Pages

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Costs and Profit Assignment

Assignment 2 (20 points) Assignment 2: Costs and Profit Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your...

Cost, Costs, Fixed cost 1254  Words | 3  Pages

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Cost and Revenues

Costs and Revenues What is cost? If you go to a store and like an item and you want to buy it, which of the following questions would you ask: What’s the price of …..? 0R How much does …. cost? Examples of costs – set-up Examples of costs - running Fixed Costs 5000 What happened to the fixed costs if for some reason the company had technical problems and was unable to produce for 2 weeks? What happens if the landlord decided to raise the rent due to high property prices...

Cost, Costs, Management accounting 1570  Words | 6  Pages

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Mixed Costs

Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation...

Costs, Fixed cost, Variable cost 1258  Words | 5  Pages

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how to get free access

Growth 3. Demand Analysis (Mong) a. Variable Analysis and Identification b. Regression Analysis c. Elasticity Analysis d. Conclusion of Regression Analysis Results e. Recommended Business Strategies 4. Cost and Production Analysis (Ten) a. Production Cost Analysis i. Fixed Cost and Variable Cost Identification ii. Capital and labor Cost b. How to achieve economies of Scales c. How to achieve economies of Scope 5. Pricing Practices (Ten) a. Cost-Plus Pricing b. Bundling 6. Market...

Business, Economics, Economics of production 496  Words | 8  Pages

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One Hundred Cost Term in Accounting

100 Costs term 1. Absorption costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product. 2. Administrative costs are all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling. 3. Allocation base is a measure of activity such as direct labor-hours or machine-hours...

Contribution margin, Cost, Costs 2246  Words | 6  Pages

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Costs and Opportunity Cost

Ronald Coase noted,“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example, the opportunity set for this Friday night includes the movies, a concert, staying home and studying, staying home and watching television, inviting friends over, and so forth. The opportunity cost of taking job A included the forgone salary of $102,000 plus the $5,000 of intangibles from job B. Opportunity cost is the sacrifice of...

Cost, Costs, Economic cost 1862  Words | 6  Pages

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Allocation Options for Fixed Manufacturing Overhead Costs

From: Jane Doe Date: March 1, 2012 RE: Allocation Options for Fixed Manufacturing Overhead Costs Dear Mr. Oray, After researching the different methods allowed for you to use in allocating the fixed manufacturing costs to the work in process and finished goods I have come to the conclusion that normal capacity is the best method for your business. First I will define theoretical, practical and normal capacity and then I will explain to you which allocation method must be used for financial statement...

784  Words | 3  Pages

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Costs and Public Goods

2013 Due dates for each section are provided in the Course Description. Part A – Microeconomics – Worth 10% of total assessment: Answer any five (5) of the following questions. Each question is worth 10 marks; Question 1: (a) Explain the impact of external costs and external benefits on resource allocation; (2.5 marks) Ans : Resources are over - allocated when negative externalities exist because the equilibrium price is too low. Resources are under - allocated when positive externalities...

Average cost, Cost, Costs 1542  Words | 6  Pages

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Surviving the Cost of Living on a Fixed Income

Surviving the Cost of Living on a Fixed Income Wanda Wellons Jones Webster University Abstract The downturn in the economy in recent years due to plummeting housing values, loss of jobs, increasing costs of goods and services, and stock market damages is causing those on the brink of retirement to focus on meeting the cost of living on a fixed income. In addition, healthcare must be an included expense. Baby Boomers affected by the Great Recession do not have to descend into poverty upon...

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Variable Cost and Large Vessel

considerations are measurement issues. Financial measures, in particular, cost measures, are needed to evaluate alternate strategies on whether to introduce a new product or service line, to determine the appropriate sale price and the consequent market position for the firm’s product. Question 1) “Contribution” represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. To compute profit contribution that can be earned by carrying 1...

Contribution margin, Cost, Costs 1045  Words | 5  Pages

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