1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rus_ich [418]
3 years ago
9

Briefly describe variable, fixed, mixed, and step costs, and indicate how the total cost function of each changes as activity in

creases within a time period. Give 3 examples of each type of cost (only one example of step costs).Minimum 200 words
Business
1 answer:
vitfil [10]3 years ago
3 0

Answer:

Explanation:

• Variable costs are costs that varies with activity level. It means that these costs changes as more and more goods and services are produced by a company. Total variable cost changes with change in output produced by a firm in the long run.

Examples of variable costs are costs of raw materials used in producing goods, direct labor costs, sales commission etc.

• Fixed costs are costs that does not vary with activity level. This means that these costs remains the same as more and more goods are produced by a company. The total fixed cost does not change with changes in output produced by a company in the short run.

Examples are rent payments, salaries, depreciation.

•Mixed costs are costs that have components of both fixed and. variable costs. The fixed part of mixed cost remains unchanged as activity level increases or decrease while the variable part changes with activity level. The fixed part of a total cost function of a mixed cost remains the same as activity level increases in the short run, while the variable part changes with output level in the long run.

Examples are utilities, insurance, operating license

•Step costs. These are costs that remains the same at an activity level but increases or decreases when the threshold of an activity is achieved.

Example is a factory production supervisor salary

You might be interested in
Shelton, Inc. has sales of $435,000, costs of $216,000, depreciation expense of $40,000, interest expense of $21,000, and a tax
Ad libitum [116K]

Answer:

The Income Statement  is-

Sales = $435,000

Costs = 216,000

Depreciation = 40,000

EBIT= $179,000

Interest = 21,000

EBT = $158,000

Taxes = 55,300

Net income = $102,700

I have done this question before in my "Money Management" Dual enrolled class.

:)

4 0
3 years ago
A man has $245,000 invested in three properties. One earns 12%, one 10% and one 8%. His annual income from the properties is $23
astraxan [27]

Answer:

for 8% investment = $110000

for 12% investment = $55000

for 10% investment =  $80000

annual income for each property is

x amount for 8% investment = $8800

y amount for 12% investment = $6600

z amount for 10% investment = $8000

Explanation:

Given data

investment = $245000

rate 1 = 12%

rate 2 = 10%

rate 3 = 8%

annual income = $23400

rate = 8%  twice that invested at 12%

to find out

invested in each property and  the annual income from each property

solution

let us consider x amount for 8% investment

and consider y amount for 12% investment

and consider z amount for 10% investment

from question we say,  8% is twice that invested at 12%

x = 2y      ........1

and

x + y + z = 245000      .............2

put 1 in equation 2

2y + y + z = 245000  

z = 245000 - 3y            ...................3

and we can say that

0.08x + 0.12y + 0.10z = 23400              ...........................4

put equation 1 and 3 in 4

0.08(2y) + 0.12y + 0.10( 245000 - 3y ) = 23400

0.16y + 0.12y - 0.3y = -1100

0.02y = 1100

y = $55000

so x = 2(y) = 2(5500) = $110000

and z = 245000 - 3(55000) = $80000

so annual income for each property is

x amount for 8% investment = 0.08 × 110000 = $8800

y amount for 12% investment = 0.12 × 55000 = $6600

z amount for 10% investment = 0.10 × 80000 = $8000

4 0
3 years ago
When the company pays rent expense for the current month, what is the effect on the accounting equation for that company?
GREYUIT [131]

Answer:

decrease the stockholder equity and decrease in assets

Explanation:

As we know, the accounting equation is  

Total assets = Total liabilities + stockholder equity

In the given case,  

The rent is paid for the current month, so the journal entry would be

Rent expense A/c Dr XXXXX

    To Cash A/c XXXXX

(Being rent is paid)

So it decreases the stockholder equity as it includes the income and expenses part and it decreases in assets as it reduces the cash balance

3 0
2 years ago
Large firms with multiple offerings in a particular product category engage in _____ targeting strategies to obtain a bigger sha
Sergeeva-Olga [200]

Answer: Differentiated

Explanation:

Differentiated Marketing is a form of marketing where a business offers several products to meet the needs of the different segments found in a market. Large firm's can produce several products to meet the need of the various market segments which would increase purchase of their products.

3 0
3 years ago
Who controls the supply for coffee shops and based on what factors
andrezito [222]

Answer:

Explanation:

Market prices control the supply for coffee shops, not only that but also it is also affected by other factors with things like: price of inputs, and how much it cost to make, and technology developments

3 0
3 years ago
Other questions:
  • Builtrite has two bond issues outstanding(sold two separate groups of bonds over the years). One issue has a 7 year maturity and
    8·1 answer
  • Which statement best describes the trait of being tactful? A. ability to be humble in every situation B. ability to remain stres
    8·2 answers
  • The set of business activities that add value to the end product is referred to as __________, in which information flows throug
    13·1 answer
  • An investment with more liquidity would be ideal for someone who
    15·2 answers
  • Writing ads and setting prices are examples of which of the following?
    5·1 answer
  • Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales b
    9·1 answer
  • When Wells Fargo employees fraudulently opened customer accounts in order to meet extremely high sales quotas, rehabilitating th
    15·1 answer
  • Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages employees in his div
    7·1 answer
  • Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive
    9·1 answer
  • If the Security and Exchange Commission finds any irregularities in the dealings of a financial securities firm, it can send a c
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!