Answer:
C. Step variable cost
Explanation:
Fixed costs are those costs which are incurred anyways irrespective of the level of operation of a business or the volume of activity. For example rent of factory is a fixed cost which has to be incurred regardless of the production level.
Variable costs are those costs which vary with the level of production. e.g labor cost.
In this case, a T- shirt is given to every 100th customer. This kind of cost is step cost at the level of 100th customer. The number of T-shirts in a day would depend upon the no of patrons arriving each day i.e variable.
Thus, this is the case of a step variable cost which is incurred at discrete point i.e every 100th customer.
Answer:
The correct answer is letter "D": The company desires to enter new markets.
Explanation:
Vertical integration happens when a corporation buys other companies in the supply chain and manages them. There are two types of vertical integration: <em>backward </em>and <em>forward</em>. In backward vertical integration a corporation, like a manufacturer, owns companies that supply inputs to the manufacturing process for businesses.
In forward vertical integration, a business owns another company in the supply chain to get closer to the end customer.
Thus, <em>vertical integration is not a technique companies use to enter new markets.</em>
Answer:
c. used to indicate where changes in technology and machinery need to be made
Explanation:
Standard Costs are established through past experiences and hence they can be used to control costs, and plan production schedules.
Changes in technology and machinery need to be made is part of perfomance management with a future outlook.
