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mixer [17]
2 years ago
5

If a company must expand capacity to accept a special order, it is likely that there will be an increase in unit variable costs.

an increase in fixed costs. an increase in variable and fixed costs per unit. no increase in fixed costs.
Business
1 answer:
Lelechka [254]2 years ago
6 0

Answer:

If a company must expand capacity to accept a special order, it is likely that there will be an increase in fixed costs.

Explanation:

The fixed costs are the part of the total costs of production that remain constant during a given reference quantity in a certain period. These include, for example, depreciation of fixed assets or rental or interest expenses. Since fixed costs are incurred regardless of the application quantity (short-term), they cannot be apportioned to the unit costs according to the cause.

In the present case, given that the company must expand its capacity to take the special order, it means that all of its production factors are totally devoted to production, so that in order to produce a greater quantity of goods, the productive factors must be increased, which are part of the fixed production costs that the company has. Therefore, as the costs of production are altered, there will be an increase in fixed costs.

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Macrosoft Company reports net income of $55,000. The accounting records reveal depreciation expense of $70,000 as well as increa
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Explain how a consumer’s place of residence has an especially large impact on their purchase of sports and entertainment commodi
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Concept: Business digression

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Revenue and Cash Receipts Journals Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month
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Answer and Explanation:

The Preparation of revenue Journal and cash receipts Journal is shown below:-

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Date         Invoice     Debited accounts    Accounts received Dr,

<u>                  number                                      Fees earned Cr,</u>

<u>March 2       512          Santorini Co.                   $905</u>

<u>March 8       513           Gabriel Co.                      $220</u>

<u>March 12      514           Yarnell Inc.                      $845</u>

<u>March 20     515          Electronic Central Inc.     $195</u>

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                        Cash Receipts Journal

Date      Accounts    Post ref.   Fees          Accounts          Cash Dr,

<u>               credited                    earned Cr,  receivable Cr,                   </u>

March 4   CMI Inc.                                        $205                  $205

<u>March 19  Yarnell Inc                                   $555                   $555</u>

March 28 Marshall Inc.

<u>               (Fees earned)             $160                                        $160</u>

<u>March 29 Santorini Co.                                $905                   $905</u>

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<u>               (Fees earned)            $85                                           $85</u>

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