All categories

2 years ago

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

Business

1 answer:

Nostrana [21]2 years ago

5 0

I do not agree with the given statement that is "Only variable costs can be differential costs.".

The difference in the costs of two alternative decisions is referred to as differential cost.

When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.

Variable costs in cost accounting are costs that vary according to how much a company produces.

Variable costs are typically proportional to output.

As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.

Hence, I disagree with the statement given in the question.

Learn more about variable cost:

brainly.com/question/9212451

#SPJ4

You might be interested in

Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,000; Additional Paid-In Capital, $

Art [367]

Answer:

The statement of stockholders’ equity for the month ended October 31 is $18,450,000.

Explanation:

Noric Cruises Inc.

Statement of stockholders’ equity for the month ended October 31

Common stock Paid-In Capital Retained Earnings

Opening balance $150,000 $3,225,000 $12,400,000

Addition 800,000 - -

Net income - - $2,350,000

Cash dividends - - (475,000)

Balance at Oct 31 $950,000 $3,225,000 $14,275,000

4 0

3 years ago

Gem City's Internal Service Fund received a residual equity transfer of $50,000 cash from the General Fund.

Sergio039 [100]

Answer:

Gem City's Internal Service Fund received a residual equity transfer of $50,000 cash from the General Fund.

This $50,000 transfer should be reported in Gem's Internal Service Fund as a credit to;

D. Transfers.

Explanation:

An internal Service fund can be defined as a fund used in most governments to keep records of goods and services that are moved between departments on the basis of cost reimbursement. An example of an Internal Service fund is when one department offers goods and services to another department. In our case, the Gem City's Internal Service Fund received a residual equity transfer of $50,000 from the General Fund in form of cash. An equity transfer is the transfer of the ownership of shares from one entity to another. In this case from the General Fund to the Gem City's Internal Service Fund.

To record the transaction above, the residual equity transfer of $50,000 to the Internal Service Fund should be recorded as a debit to Cash and a credit to Transfers. The reporting of Transfers is usually on a separate line in the Statement of Revenues and Expenses for the fund. It comes immediately after the line item: Operating Income/Loss before Transfers and Additions.

6 0

3 years ago

What is the main function of the federal deposit insurance corporation?.

Taya2010 [7]

Answer:

the mission of the federal deposit insurance corporation is to maintain and public confidence in the nation's financial system

4 0

3 years ago

Recommend ways to deal with the following personalities in the workplace

Ne4ueva [31]

· Complainer – ask more ideas instead of complaints from this person. You need to be patient when you are talking with him.

· Indecisive – guide this person to oversee his decisions and the consequences that may follow.

· Expert – solicit for his advice always and appraise him for giving so.

· Quiet – do some interactive activities that will make him speak for himself more.

· Aggressive – be calm and open when you are talking with him.

8 0

4 years ago

Helen's credit card has an APR of 15.32% and a grace period of 17 days, and Helen pays her balance in full every month. If her l

Free_Kalibri [48]

No because she paid in the grace period

7 0

3 years ago

Read 2 more answers