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3 years ago

Which costs will change with a decrease in activity within the relevant range? Select one:

Business

1 answer:

Harman [31]3 years ago

6 0

Answer:

The correct answer is option b.

Explanation:

The fixed costs refer to that part of the cost of production which is not affected by the volume of activity. The total fixed cost remains constant in the entire production process.

The fixed cost per unit is the ratio of total fixed costs and the level of output. It increases with a decrease in level of activity.

The variable cost is the cost incurred on the variable inputs employed in the process of production. As the level of activity declines the number of variable factors employed will also decline. This will cause the total variable cost to decrease.

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I want to study accounting at levels 2 and 3. What can you offer me in my choice of subjects? Would this come under 'Business'?

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Answer:Yes.

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Nancy finally found a house of her dreams and the price looks great. She was told that she needs to hire a home appraiser and a

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4 years ago

Read 2 more answers

Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on acco

vaieri [72.5K]

Answer:

February 2

Debit Inventory $60,000

Credit Cash/Accounts payable $60,000

February 5

When a return of the item purchased is done,

Debit Cash/Account payable $4,000

Credit Inventory $4,000

Explanation:

In the perpetual inventory system, any movement (sale or return or purchase) must be adjusted in the books once the item moves.

When an item is purchased, such purchase may be done by cash or on account, the entries required are

Debit Inventory

Credit Cash/Accounts payable

When a return of the item purchased is done,

Debit Cash/Account payable

Credit Inventory

Amount returned = $40 * 100

= $4,000

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3 years ago

Kulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on

ipn [44]

Answer:

b. $303,000

Explanation:

The activity rate

1. Machining = $\frac{\text{total cost}}{\text{total activity}}$

$=\frac{180000}{9000}$

= $ 20 per machine hour

2. Machine set up = $\frac{\text{total cost}}{\text{total activity}}$

$=\frac{125000}{250}$

= $ 500 per set up

3. Product design = $\frac{\text{total cost}}{\text{total activity}}$

$=\frac{44000}{2}$

= $ 22000 per product

4. Order size = $\frac{\text{total cost}}{\text{total activity}}$

$=\frac{260000}{10000}$

= $ 26 per direct labor hour

Now the ABC cost (Product T05P)

1. Machining = $\text{machine hours} \times \text{activity rate}$

= 4000 x 20

= $ 80,000

2. Machine set ups = $\text{no. of set ups} \times \text{activity rate}$

= 90 x 500

= $ 45,000

3. Product design = $\text{no. of products} \times \text{activity rate}$

= 1 x 22000

= $ 22,000

4. Order size = $\text{direct labor hours} \times \text{activity rate}$

= 6000 x 26

= $ 156,000

Therefore, the total manufacturing overhead cost assigned to product T05P = 80000 + 45000 + 22000 + 156000

= $ 303,000

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3 years ago

Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skill

Liono4ka [1.6K]

Answer:

False

Explanation:

Due to the fact that the same amount of training is needed in each of the industries, wages would be the same. If wages were higher in the air craft industry, their would be an excess supply of labour in the airline industry. This would pull the wages in the airline industry down until the same wages are earned in both industries

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3 years ago