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4 years ago

A fixed cost is a cost which

Business

1 answer:

ale4655 [162]4 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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Suppose a recent government report indicates that 12% of the labor force is African American. Of the individuals in the labor fo

Anika [276]

Answer:

The probability that a randomly selected member of the labor force is African American given that he or she is unemployed is 0.2308.

Explanation:

The events are denoted as:

A = a member of a labor force is African American

B = a member of a labor force is unemployed

The information provided is:

$P(A)=0.12\\P(B|A)=0.11\\P(B|A^{c})=0.05$

The Bayes' theorem states that the conditional probability of an event E given that another event X has already occurred is:

$P(E|X)=\frac{P(X|E)P(E)}{P(X|E)P(E)+P(X|E^{c})P(E^{c})}$

Use the Bayes' theorem to compute the value of P (A|B) as follows:

$P(A|B)=\frac{P(B|A)P(A)}{P(B|A)P(A)+P(B|A^{c})P(A^{c})}=\frac{0.11\times 0.12}{(0.11\times 0.12)+(0.05\times (1-0.12))}=0.2308$

Thus, the probability that a randomly selected member of the labor force is African American given that he or she is unemployed is 0.2308.

3 0

4 years ago

On January 1, 2018, UML Company leased a machine to UMB Corporation. The lease qualifies as a sales-type lease. UML paid $240,00

nexus9112 [7]

Answer:

Date Account Title Debit Credit

Dec 11, 2018 Interest receivable $20,600

Interest revenue $20,600

Explanation:

The interest receivable on December 31, 2018 would be based on the lease amount at the end of the year which will be the present value of the lease less the lease amount paid for the year:

Lease amount = 240,000 - 34,000

= $206,000

Interest receivable = 206,000 * 10%

= $20,600

6 0

3 years ago

A customer, age 60, has a fixed annuity contract with a value of $16,000. The cost basis in the contract is $10,000. If the cust

g100num [7]

Answer:

$5,000 taxable

Explanation:

In this scenario, the tax consequence of withdrawal will be $5,000 taxable. This is because annuity contract contributions are not tax-deductible, meaning that the original contribution of $10,000 has already been taxed. Therefore in this situation all $5,000 will be taxable, luckily since the individual is over the age of 59 1/2 then the distribution is not subjected to a 10% penalty tax for premature distribution.

6 0

3 years ago

He Silver Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Departme

Troyanec [42]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Dept.A Dept.B

Direct labor cost $ 63,000 $ 40,000

Manufacturing overhead $ 80,010 $ 68,450

Machine-hours 4,700 18,500

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Departement A:

Estimated manufacturing overhead rate= 80,100/63,000= $1.127 per direct labor cost

In % terms= 127% of direct labor cost.

Department B:

Estimated manufacturing overhead rate= 68,450/18,500= $3.7 per machine hours

3 0

3 years ago

Kaplan Manufacturing Corporation purchased 2,500 shares of its own previously issued $10 par common stock for $57,500. As a resu

Hitman42 [59]

Answer:

b. Kaplan's total stockholders' equity decreased $57,500

Explanation:

The purchase of treasury stock is as follows:

Treasury Stock debit 57,500 (-Equity)

cash credit 57,500 (-Assets)

The company's equity decreased as well as the Assets.

The common stock and paid-in Capital in Excess of Par Value will not be modified.

This account will be decreased if the stocks are retired not at purchase

7 0

3 years ago