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Novosadov [1.4K]
3 years ago
11

11) Outside the relevant range, variable costs, such as direct material costs ________. A) will not change proportionately with

changes in production volumes B) will decrease proportionately with changes in sales volumes C) will remain the same with changes in production volumes D) will increase proportionately with changes in sales volumes
Business
1 answer:
Marrrta [24]3 years ago
5 0

Answer:

A) will not change proportionately with changes in production volumes

Explanation:

Variable costs are the expenses that vary as the production level increase or decrease. Usually, an increase in output leads to a proportionate rise in variable costs in a period. An example of variable cost is raw materials. Variable costs increase proportionally with output up to the optimal level.

Beyond the optimal or the normal range, variable costs tend to rise at a higher rate than the output level. The concept of diminishing marginal returns takes effect. As output increases beyond the normal range, variable cost rise at an increasing rate making the gains from the increased production decline.

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For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in
ratelena [41]

Answer:

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction                                                        Remark

1.  Guarantee of supplier's debt                  (c) have no disclosure

2. Damages for disgruntled employee      (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz.  But with the legal case of a disgruntled employee, Cruz should disclose the information in a note.  It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

8 0
3 years ago
Bill and Stacy enter into a contract that falls within the provisions of the UETA. Under the UETA, "information that is inscribe
vladimir2022 [97]

Answer:

a record.

Explanation:

Uniform Electronic Transactions Act (UETA) is an act in the United States that was proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and was created in order to make consistent the laws surrounding the retention of paper records as well as the validity of electronic signatures. Under this act the "information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form" is known as a record.

5 0
3 years ago
Martha is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she
nata0808 [166]

Answer:

Martha

Based on the data and assuming these trends continue,

Investment in Handy Prosthetics is preferred as it would give Martha a stable long-term investment.

Explanation:

a) Data:

                                                          Handy         El Lobo Malo

                                                       Prosthetics    Incorporated

Standard deviation of stock prices = $1.05            $9.82

b) The above standard deviations measure the spread of the stock prices over their daily stock closing prices in one year.  The Handy Prosthetics' stock does not fluctuate as much as the El Lobo Malo's stock.  This reduced fluctuation in prices makes it a more stable investment than El Lobo Malo's stock.  Therefore, Martha should prefer the Handy's stock to the El Lobo Malo's stock.

6 0
3 years ago
A database program helps to ___
kakasveta [241]

organize and store large amounts of data/information

8 0
2 years ago
A company uses a standard-cost system. The company prepared the following budget using normal capacity for the month of May: Dir
ExtremeBDS [4]

Answer:

$4,500 favorable

Explanation:

The computation of the budget (controllable) variance for May using the two-way analysis of overhead variances is shown below:

Variable overhead per labor hour os

= $72,000 ÷ 36000

= $2 per hour

Now

Budgeted overhead for actual production is

= (31,500 × $2) + $162,000

= $225,000

So,

Controllable variance is

= Budgeted overhead for actual production - Actual overhead

= $225,000 - $220,500

= $4,500 favorable

8 0
2 years ago
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