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
The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the prev
Natalka [10]

Answer:

The appropriate answer will be "289 boxes".

Explanation:

The given values are:

Cost

= $6

Sales price

= $18

Salvage price

= $3.60

Average daily demand (d)

= 254 boxes

Standard deviation (\sigma d)

= 37 boxes

Now,

Overage of cost will be:

⇒  Co=Cost-Salvage \ price

          = 6-3.60

          =2.4 ($)

Underage of cost will be:

⇒  Cu=Price-cost

          =18-6

          =12 ($)

⇒  Service Level = \frac{Cu}{Cu+Co}

On substituting the given values in the above formula, we get

                            = \frac{12}{12+2.4}

                            = 0.83 \ i.e.,\ 83 \ Percent

The service level value of Z at 83% is = 0.954

⇒  Order quantity = d+(Z\times \sigma d)

                               = 254+(0.954\times 37)

                               = 289.298 \ OR \ 289 \ boxes

7 0
2 years ago
How successful were the redeemers at using the "race card" to promote their agendas?
brilliants [131]
The Redeemers were a political group that began during Reconstruction after the Civil War.  Their popular movement was aimed at "saving" the South by preventing the federal government from providing public services to blacks.  They were successful in this endeavor by gaining control of many Southern state governments and reducing funds for public schools and hospitals under the guise of increasing efficiency.  Their real aim, however, was to prevent blacks from gaining political and economic power.
5 0
3 years ago
The government has set a price floor on bread. Manufacturers cannot sell loaves for less than $5.00, which is a dollar above the
Ber [7]
Draw the supply/demand curve. The line is above market equilibrium....the question literally states that the price rises, and since the supply curve has a positive slope (assuming unit elasticity), the supply will increase. Meanwhile, the demand curve has a negative slope (still assuming unit elasticity), so the demand for it will decrease. This will result in a surplus, aka, an excess supply.
7 0
3 years ago
A coase solution to a problem of externality insures ensures that a socially efficient outcome is to:
Zinaida [17]

Answer:

The correct answer is letter "C": maximize the joint welfare, irrespective of the right of ownership.

Explanation:

Named after British economist Ronald Coase (1910-2013) the Coase Theorem is a legal and economic theory which states that, when there are competitive markets and no transaction costs, <em>bargaining will result in an effective and mutually beneficial outcome irrespective of how property rights are distributed</em>.

5 0
2 years ago
A first-round draft choice quarterback has been signed to a three-year, $10 million contract. The details provide for an immedia
inessss [21]

Answer:

$8.31 million and No.

Explanation:

In this question, we have to find out the present value which is shown below:

= $1 + first year value ÷ ( 1 + discount rate) + second year value ÷ ( 1 + discount rate) ^ number of years + third year value ÷ ( 1 + discount rate) ^ number of years

= $1 + $2 million ÷ (1 + 10%) + ($3 million ÷ 1.10)^2  + ($4 million ÷ 1.10)^3

= $1 million + $1.82 million + $2.48 million + $3.01 million

= $8.31 million

No the package would not worth $10 million as its present value is $8.31 million

7 0
3 years ago
Other questions:
  • The Seller holds security deposits in the amount of $1,000 from each of six tenants. On the settlement sheet:
    9·1 answer
  • Which type of business is most likely to use the bricks-and-clicks business model?
    15·2 answers
  • 5. Firm Q is about to engage in a transaction with the following cash flows over a three-year period: Year 0 Year 1 Year 2 Reven
    7·1 answer
  • Identificar y describir 3 características de los períodos contables
    11·1 answer
  • Which indicators do economists use to determine the state of the economy? Check all that apply.
    9·2 answers
  • LC Delivery has decided to sell 1,800 shares of stock through a Dutch auction. The bids received are as follows: 600 shares at $
    8·1 answer
  • The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,
    12·1 answer
  • The number of shares of a class of stock that are outstanding is: Multiple Choice the number of shares authorized minus the numb
    5·1 answer
  • Item1 Return to questionItem 1 Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as f
    12·1 answer
  • Someone who enjoys the benefits of a good or service without paying any of the costs is referred to by economists as a _________
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!