Answer:
Marginal cost, average variable cost, and average total cost will increase. Average fixed cost will not change.
Explanation:
Marginal Cost is the change in total cost as a result of producing one extra unit of output.
Variable cost is cost that varies with output level. Average variable cost = variable cost / quantity produced
Fixed cost is cost that doesn't vary with the level of output produced. Average fixed cost = Fixed cost / quantity produced.
Total cost is the sum of fixed and variable cost. average total cost is total cost / quantity produced.
If the price of supplies increase, the cost of production increases and average total cost, average variable cost and marginal cost would increase.
Fixed cost would remain the same.
I hope my answer helps you
Answer:
LIFO
Explanation:
It will be the one that give higher Cost of goods sold. We also know that:
Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory
So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.
Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.
The ones that count equal the a-l period cost because the inventoriable cost is the thing businesses have at period cost
<span>If the overheads increase, the price of cars will go up too. If it didn't go up then the company would either be having lower revenue or they would be losing money. This way, they increase the price of the car to negate the increase of the overhead. This might however lead to the lack of demand for a more expensive car so they would certainly have to find a way to go around this.</span>
