Answer:
Fixed costs that can be avoided by discontinuing the line.
Explanation:
Avoidable costs are those costs which can be eliminated by closing or rejecting a decision under evaluation. These costs are mostly variable coasts which vary with the change in activities. More activity more cost, less activity less cost and no activity no cost.
So fixed costs that can be avoidable by discontinuing the project is the only irrelevant cost between the given options.
Answer:
IF WOOL MEN CHARGES $3100 PER STUDENT,THEN CONTRIBUTION PER STUDENT=
CHARGES PER STUDENT =$3100
LESS:VARIABLE COST
SUPPLIES ($350)
ASSISTANT SALARY ($155)
($7000/45)
CONTRIBUTION $2595
COST PER STUDENT:
SUPPLIES $350
OFFICE ($7000/45) $155
INSURANCE ($40000/240*) $167
REPAIR ($32000/240) $133
AND MAINTENANCE
DEPOSIT ($60000/240) $250
TOTAL $1055
Explanation:
The given table will elaborate it more.
Answer: Accounting profits ignore implicit costs; economic profits consider them.
Explanation: In simple words, implicit cost refers to the cost of choosing the best alternative and loosing the profit that one could have earned by choosing the second best alternative.
Accounting profit is the revenue that one has left with after compensating for explicit cost but economic cost also takes into consideration the implicit one.
