Answer:
Estimated variable costs per unit=$86.
Option A is correct ($86.00)
Explanation:
Variable cost are those which changes with the activity level. These costs are help in making decision because if we talk about fixed costs, fixed costs do not help in making decisions as they are sunk costs. Management uses variable costs for making the decisions.
Estimated variable costs per unit= Direct material+Direct labor+Variable manufacturing overhead+Variable selling expenses
Estimated variable costs per unit=$38+$23+$21+$4
Estimated variable costs per unit=$86.
Option A is correct ($86.00)
Answer:
c. 2.42 years
Explanation:
The computation of the payback period is shown below:
<u>Year Cash flow Cumulative cash flow</u>
0 -$475 -$475
1 $150 -$325
2 $200 -$125
3 $300 $175
Now the payback period is
= 2 years + $125 ÷ $300
= 2.42 years
D. For savers in low income tax brackets than for savers in high income tax brackets.
Answer: d. it is necessary to relate variable cost data to the activity index chosen
Explanation:
The activity index shows how various activities have an impact on the cost of production.
When developing a flexible budget within a relevant range of activity, ome must relate variable cost data to the activity index chosen to ensure that it is indeed variable.
Answer:
The answer is D. Activity attributes
Explanation:
Activity attributes are descriptive components of an activity. Examples of these attributes include; activity name, description and responsible person.
