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 by referring to question 4 at the end of Chapter 23. 1. Graph total fixed cost‚ total variable cost‚ and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves Graph AFC‚ AVC‚ ATC‚ and MC. Explain the derivation and shape of each
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Variable costing vs Absorption costing Variable and Absorption costing are two different methods and ways that many organizations use to determine and calculate product cost. The income statements formats of both methods include period and product costs. However‚ each one has a different cost classification definition. Both have the same direct material and direct labor allocation‚ the differences is how they report the income‚ product‚ and pricing One of the main differences between
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ACC604 Final Exam Practice Questions – Series H 1. The Work in Process inventory account of a manufacturing company shows a balance of $18‚000 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $6‚000 and $3‚000 for materials‚ and charges of $4‚000 and $2‚000 for direct labor. From this information‚ it appears that the company is using a predetermined overhead rate‚ as a percentage of direct labor costs‚ of: A. 50% B. 200% C. 300% D. 20%
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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 equals the sum of variable cost plus fixed cost. D. sales revenue equals total variable cost. E. profit is greater than zero
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Are Americans becoming too dependent on computers? Nowadays more and more Americans are too independent on electronic devices especially they can’t do without computers. This is a commonplace opinion as well as a problem in American society because it is hard to imagine a modern world without information technology that are widely used by Americans beginning with little children and ending with seniors. All this dependence undoubtedly has a negative impact not only on human health‚ and on other
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Agri-environment contract adoption under fixed and variable compliance costs. This report looks at the agri-environment contract adpted by farmers’ to be able to contribute and partake in the enrivonmental schemes through pressure groups and government. It provides disctinct description to the differences in fixed and variable costs. The purpose of explaining the differences were to illustrate how farmers partaking to the project would be different than how much land will be needed to chip in the
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manage what the company manufactures‚ sells‚ and to give advice as to where costs can be reduced. 2-3. Three examples of a variable cost are a 12% increase in the production of dresses‚ which will cause a 12% increase in variable costs. A 10% increase in clothes will cause an 10% increase in variable costs. A 30% increase in labor hours will cause a 30% increase in variable costs. Three examples of a fixed cost are a 12% increase in airline costs but the fixed costs remain unchanged. A 50% increase
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1. Cost of goods manufactured will usually include: A. only direct labor and direct materials costs. B. some costs incurred during the prior period as well as costs incurred during the current period. C. only costs incurred during the current period. D. some period costs as well as some product costs. 2. During the month of August‚ direct labor cost totaled $13‚000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88‚000‚ the manufacturing overhead
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Immigration does not hurt the Economy Since the founding of the U.S. more than 200 years ago‚ people have come here from every country on earth. Whether it be escaping an oppressive government‚ or just to find a general better way of life‚ people immigrate to the United States. Some people say that when an immigrant comes here‚ they are not used to our way of life‚ and therefore throw off our way of life and economy. They say that they cause more harm to the stable‚ tax-paying citizens of the
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VARIABLE-RATE PREFERRED STOCK Preferred stock has frequently been issued in connection with mergers and acquisitions. Often the preferred stock is issued with a conversion feature‚ so in the long run there is a probability it will become common stock capital. Preferred stock allows the acquired firm’s owners a prior claim relative to common stock and reasonably definite dividends while simultaneously giving the acquiring firm a form of leverage without strapping it with the rigid obligations of
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