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2 years ago

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

Business

1 answer:

hjlf2 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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The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of premiums paid during the year. Jo

trasher [3.6K]

Answer:

prepaid expense 15,500 debit

prepaid insurance 15,500 credit

Explanation:

The amount of unexpired insurance will be the ending balance of the account

4,500 debit

+ 16,600 premium paid

+/- adjustment

5,600 ending

4,500 + 16,600 - 5,600 = 15,500

8 0

2 years ago

Read 2 more answers

On January 1, 2018, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than Dec

hram777 [196]

Answer:

$120,000

Explanation:

Given that,

stock options = 90,000

Each option can be exercised to acquire one share of $1 par common stock for $12.

Total Value of the option = stock options × fair value of the options

= $90,000 × $5

= $450,000

company to estimate that 10% of the options would be forfeited, so,

= 90% of Total Value of the option

= 0.9 × $450,000

= $405,000

2 out of 3 years = $405,000 × 2/3

= $270,000

$=\frac{Total\ value\ of\ the\ options}{no.\ of\ years}$

$=\frac{450,000}{3}$

= $150,000

Compensation expense (2019) = $270,000 - $150,000

= $120,000

6 0

2 years ago

Discuss the different situations when the communication exists

ddd [48]

Answer:

Communication in Different situations.

1. Communications in different situations Chapter 8

2. The different kind ofcommunication skill is required as per the situation and the functions of the organizations.Communication takes on different characteristics as the situation changes Chapter 8

3. Oral Communication Situations Face-to face InterviewCommunication Telephone

4 0

2 years ago

Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter t

stira [4]

Answer:

foreign franchising

Explanation:

A system based on selling the right to replicate in overseas markets a profitable business format. The franchisor gives the franchisee exclusive rights to sell its goods or services in installed and fitted establishments as well as the right to use copyrights.

For international markets, the two main types of franchise agreements are:

1) Direct franchise agreement,

2) Master franchise agreement

4 0

3 years ago

On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chose a color

lora16 [44]

Answer:

unearned service revenue 7,500 DEBIT

service revenue 7,500 CREDIT

Explanation:

the job is complete on July 31th

so we write-off the unearned service reveue

and we recognize the service revenue for the whole amount of the contract

The cash receipt occurs on March 1st so w edon't haveto post anythign related to cash on July 31th.

the unearned revenue account is used first because the business has the obligation of perform the job or return the cash. So it is a liablity until the job is completed

7 0

3 years ago