Answer:
fixed costs = $255,000
variable costs = (15,000 / 17,000) x $216,750 = $191,250
Explanation:
A flexible budget is prepared in order to compare how budgeted revenues and costs actually worked out. In other words, if actual revenues and costs were similar to the budget previously prepared. A flexible budget adjusts actual results and helps management control how efficient the company was in following their budget. That is why a flexible budget is done after the budgeted period is over.
Fixed costs should not change (that is why they are fixed), but variable costs should change if the actual output was different than the budgeted output.
Answer:
<em>Before setting your prices, it's wise to research industry standards- B.</em>
Answer:
Emerson elaborates what is know as rough love
Explanation:
Sometimes to bring out the best in a person it is necessary to do things against his or her will, this happens a lot in cases where the parent educates the child or a close family member or friend worries for the welfare of the loved one, and is determined to taking action to change the situation and that includes applying discipline; or for example, hiding drinks from an alcoholic's son or even punishing a children for misbehave.
Emerson elaborates this in a succinct and not too apparent way, emphasizing the need for relationship with discipline.
Fixed cost remained constant regardless of how many products are sold. Fixed cost is a cost behavior which always emerged regardless of the quantity product sold. Machine depreciation expense, insurance expense, and rent expense are several examples of this cost behavior. On the contrary, variable cost is an another type of cost behavior that changes relating to the quantity of the sold product.
Answer:
cost-based transfer pricing
Explanation:
If the firm uses negociated rtansfer pricing they will stablish the transfer price based on manager bargain skill and leverage of each division. The CEO will not a grip on controlling cost across all dvisions, the managers will.
Therefore the best option is to go with a cost-based transfer pricing. The CEO can determinatethe method to determinate the cost and indriectly the cost across all divisions.
