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3 years ago

LO 2.2Explain the differences among fixed costs, variable costs, and mixed costs.

Business

1 answer:

hjlf3 years ago

7 0

Answer:

Explanation:

There are primarily two types of costs, i.e. variable costs and fixed costs. The variable cost is the cost that varies when the level of production changes, whereas the fixed cost is the cost that remains constant, whether the level of production changes or not.

Therefore, indirect material indirect labor, and factory supplies are included in the variable costs, and the fixed costs include supervision taxes and depreciation expenses.

The mixed cost is a mix combination of both the variable cost and the fixed cost which includes some components of fixed cost and some components of variable cost. It is also known as semi-variable cost

Example - transportation cost, tel communication cost, etc

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Suppose you win the lottery and have two options: A. Take $1 million now. B. Take $1.2 million to be paid out as 300,000 now and

laila [671]

Answer:

A. Take $1 million now.

Explanation:

A. If we take $1 million now the present value of the money is $1 million.

B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;

$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728

$300,000 + $250,000 + $208,000+ $173,611 = $931,944

The present value of option B is less than present value of option A. We should select option A and take $1 million now.

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3 years ago

Assume a domestic company in the US, let's say Colgate-Palmolive, is deciding to export to a country where to date Colgate produ

MrMuchimi

Answer:

agent method of entry

Explanation:

Agent method of entry will demonstrate lower fixed costs associated.

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3 years ago

Read 2 more answers

1. Ira Schwab opens up a Schwab IRA and places $2,000 in his retirement account at the beginning of each year for 10 years. He b

s2008m [1.1K]

Answer:

He will have $102,979 in his retirement account in 10 years.

Explanation:

Annual Payment = $2,000

Number of Year = n = 10

Interest rate = i = 5%

Compounded Quarterly

Future value after 10 years

FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )

FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )

Future value = $102,979

So, Ira Schwab will have $102,979 in his retirement account in 10 years.

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3 years ago

Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Rela

klasskru [66]

Solution :

We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :

Particulars Amount ($)

Customer advances the balance Dec 31, 2008 110

Add : advances that is received with 2009 orders is 195

Less : advances applicable to the orders in 2009 -180

Less : advances from orders that are canceled in 2009 -45

Advances from the customers liability Dec. 31, 2009 80

Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.

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3 years ago

G why is the future value always more than the present value?

olya-2409 [2.1K]

The future value is always more than the present value because the value of the dollar can be higher in the next day. plus it can be adding the interest in the future value.

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3 years ago