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suter [353]
3 years ago
10

A fixed cost is a cost which

Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer:

The answer is c. remains constant in total with changes in the level of activity.

Explanation:

In a cost structure of a firm, for decision-making purpose, it is usually divided into fixed cost and variable cost.

Variable cost is the type of costs which will increase following an additional production of an extra unit of product/service, that is, level of activity has been risen up given the production is taken place. A good example of these cost are material cost, labeling cost.

Fixed cost, as it name may tell, is costs that are unchanged regardless of a firm's activities level. That is, regardless of how many product/service is produced, these costs remain the same. A good example of these cost are depreciation cost, rental cost.

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Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currentl
Aleksandr-060686 [28]

Answer and Explanation:

a. The computation of operating profit is shown below:-

Profit per unit = Purchase price from outside per unit + variable cost of production internally

= $15 - $7

= $8

Total increment in operating profit = Profit per unit × Total number of units

= $8 × 24,000

= $192,000

b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)

c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit

3 0
3 years ago
Which of the following is the term often used to describe a defective vehicle?
ladessa [460]

Answer: lemon law

Explanation:

3 0
3 years ago
In regard to an operating budget identifiable costs may generally include _________.
PSYCHO15rus [73]

Answer:

Explanation:

Identifiable costs by definition are expenses that can be identified directly with a specific facility, activity or function. Operating budgets deal with short term expenses and expenses to be incurred in the next one year. Therefore, in regard to operating budget, identifiable costs may generally include cost of inventory, cost of fixed assets like land and equipment, supporting group and the direct care group wages.

6 0
3 years ago
A concept that can be used to describe (how will government's money be spent)
jonny [76]
Governments money is usually spent for weapons or vaccines for sicknesses.
6 0
3 years ago
Janeesa drove 75 miles. This represents 60% of her entire trip. What is the total number of miles in Jeneesa's trip?
Alenkinab [10]

125 Miles

Make x stand for the total trip miles.

75 = .6x

Divide by .6 (60%)

x= 125 miles

3 0
2 years ago
Read 2 more answers
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