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3 years ago

As the business grows:

Business

2 answers:

cluponka [151]3 years ago

7 0

Answer:

salaries and wages will go up

Explanation:

As a company grows, total salaries and wages will go up basically because more people will work in the company. Total expenses are generally not important by themselves, they must be compared to other factors to determine if the company's growth is healthy or not.

For example, as the company grows, all of its expenses will increase, selling and administrative expenses, production costs, etc. Here is where average costs or sales ratios are important.

Average total costs (ATC) per unit are important since even though total costs might increase, total output should also increase, and hopefully in a higher proportion. If the company is being more productive and efficient its ATC should decrease.

tamaranim1 [39]3 years ago

3 0

Answer:

As the business grows: salaries and wages will go up as output increases

Explanation:

If a business tends to grow the salaries of the workers will go up and wages will increase too because now there s more output compared to when the business started and you will have to probably hire more workers or pay for overtime.

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1 year ago

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4 years ago

According to the assumptions of CVP, ______ will not change as the volume of a product increases or decreases. total variable co

fgiga [73]

Answer:

Fixed costs, sales price, and variable cost per unit

Explanation:

Cost-volume-profit (CVP) analysis is a cost accounting technique that examines how operating profit is affected by varying levels of costs and volume. Another name for CVP is break-even analysis because for different sales volumes and cost structures, it provides the break-even point (BEP) for different sales volumes and cost structures. BEP can assist managers during the short-term economic decision making.

Some of the assumptions of CVP are that fixed costs, sales price, and variable cost per unit will not change even when the volume of a product changes. The change in the volume of a product can either be an increase or a decrease.

Therefore, according to the assumptions of CVP, fixed costs, sales price, and variable cost per unit will not change as the volume of a product increases or decreases.

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3 years ago