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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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1. Does the selected business have differentiated products or services? If so, what is the basis for this differentiation from t

Brut [27]

Answer: You can know if you have differentiated products if we have a quality that stands out from the other competitors.

For example: Our service time is less than the competition and we also give gifts to our buyers, things that the competition does not do.

The basis for differentiation is to look for that quality that the competition does not have and that adds value to what we are doing.

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3 years ago

Starbucks is a global company that provides high-quality coffee products. Assume that as part of its expansion strategy, Starbuc

goldenfox [79]

No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.

Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.

We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.

A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.

There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.

Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.

Learn more about bonds at brainly.com/question/25965295

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7 0

1 year ago

Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual in

k0ka [10]

Answer:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

Nov 15

Dr Accounts payable 8,650

Cr Merchandise inventory 346

Cr Cash 8,304

Explanation:

Preparation of Journal entries

Based on the information given we were told that on Nov. 5 the company Purchased 900 units of product at the amount of $10 per unit which means that the Journal entry will be:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

(900 units *$10 per units)

Based on the information given we were told that the company on Nov. 7 Returned 35 defective units from the the month of November 5 purchase in which they received full credit which means that the Journal entry will be:

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

(35*$10 per units)

Based on the information given we were told that the company on Nov. 15 Paid the amount of money due from the month of November 5 purchase in which they minus the return on November 7 which means that the Journal entry will be:

Nov 15

Dr Accounts payable 8,650

(9,000- 350)

Cr Merchandise inventory 346

(4%*8,650)

Cr Cash 8,304

(8,650-346)

8 0

3 years ago

A. : Anything that serves as a medium of exchange.

adelina 88 [10]

It’s money I’m pretty sure

8 0

3 years ago

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

Butoxors [25]

Answer:

Part(A):

Total expenses in connection with condo:

= 2000 + 6500 + 2000 + 1400 + 2500 + 14500

= $28,900

Assuming Alexa receives $20,000 inn gross rental receipts, she will incur losses = 20000 -28,900 = (8,900)

As Alexa's AGI from all sources other than the rental property($200,000) is higher than $150,000, she will not be able to deduct any amount of loss against her active income.

Therefore the loss is not deductible and rental activity has no effect on her AGI.

Part(B):

Assuming that Alexa’s AGI from other sources is $90,000.

Since her AGI is less $100,000, she will be able to deduct loss of $8,900

Therefore, rental activity loss will reduce Alexa's AGI to = 90,000 - 8.900 = 81,100

The rental activity loss will reduce her AGI by $8,900 and her AGI would be 81,100.

5 0

3 years ago