All categories

4 years ago

The cost of raw materials used to produce a good or service represent the firm's ________ costs.

2 answers:

8 0

Variable costs. Variable costs depend on exactly how much of a good or service a business provides, and these costs can differ from month to month based on production levels.

maks197457 [2]4 years ago

8 0

Answer:

The correct answer is ''variable''.

The cost of raw materials used to produce a good or service represent the firm's variable costs.

Explanation:

The variable cost is the name given, in the field of economics, to the term that refers to the costs of a company that depends on the level of production that is being produced. It refers to the variaton of the cost when it varies the production, therefore if there is no production then there are no variable costs. Moreover, this type of costs equals the sum of marginal costs over all units produced.

On the other hand, in the case asked, the variable cost of the firm will depend on how much they will produce and therefore that the cost of those raw materials would not always be the same, those costs will change with the production.

You might be interested in

The following transactions apply to Ozark Sales for Year 1:

attashe74 [19]

Answer:

Current liabilities: Accounts payable$130,000

Sales tax payable 8,800

Warranty Payable 4,000

Interest payable 667

Notes payable 50,000

Total current liabilities$193,467

Explanation:

7 0

2 years ago

Montross Lumber processes wood to be shipped to construction companies. In order to keep its products uniform, Montross conducts

tiny-mole [99]

Answer:

$450

Explanation:

Activity based costing is the process by which a business allocates cost on the basis of the number of times an activity is carried out.

For example if different departments use a photocopier to copy 3,000, 5,000, and 2,000 sheets. The total cost will be allocated based on amount of activity per department.

In this instance

Total number of boards= 36,000

Inspections= 5% of the total

Inspection cost= $15 per hour

Percentage that will be inspected= 0.05 * 36,000 = $1,800

It takes one minute to inspect each board, there are 60 minutes in one hour. So 60 boards are inspected in one hour.

Number of inspection hours= 1,800 ÷ 60= 30 hours

Total cost of inspection= Cost per hour * Number of hours

Total cost of inspection= 15 * 30= $450

7 0

4 years ago

Good strategy execution involves Multiple Choice making choices among broad or narrow low cost and differentiation strategies to

Semmy [17]

Answer:

The answer is: team participation to perform strategy-critical activities in light of prevailing circumstances.

Explanation:

The good execution of the strategy is mainly related to the ability of managers to involve all operational areas and all employees in the process of participating in the strategic actions that were developed to achieve the goals and objectives of the organization.

Therefore, managers have an essential role in exercising control, coordination and monitoring of the teams, so that the execution of the strategy takes place in an effective and active manner, being shared as a responsibility and efforts of the entire team.

8 0

3 years ago

Impression management theory suggests that people change their attitudes to match their behaviors in an effort to

Reika [66]

Answer:

Impression management theory states that one tries to alter one's perception according to one's goals. In other words, the theory is about how individuals wish to present themselves, but in a way that satisfies their needs and goals.

Explanation:

8 0

2 years ago

Suppose that a decrease in the price of good X results in fewer units of good Y being sold. This implies that X and Y are A. sub

steposvetlana [31]

Answer: Option (A) is correct.

Explanation:

Good X and Good Y are substitute goods. Substitute goods are the goods that can be consumed in place of each other. There is a positive relationship between the price of one good and the demand for its substitute good. For example; tea and coffee. If the price of tea increases then as a result demand for coffee increases, because drinking tea become more expensive for the consumers as compared to the coffee. So, the demand for coffee increases, despite its price remains the same.

6 0

3 years ago