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maw [93]
4 years ago
15

Average fixed costs a. are defined as the change in total costs divided by the change in output. b. will always increase as outp

ut increases. c. will always decrease as output expands. d. will remain unchanged as output expands.
Business
1 answer:
iVinArrow [24]4 years ago
7 0

Answer:

Option (c) is correct.

Explanation:

Average fixed costs is determined by dividing the total fixed costs by the amount of output produced.

For example:

Total fixed cost = $5,000

Number of units initially produced = 100 units

Therefore, the average fixed cost at 100 units is calculated as follows:

\frac{Total\ fixed\ cost}{Ot\ produced}

=\frac{5,000}{100}

= $50 per unit

Now, suppose the number of units produced increases from 100 units to 200 units. Then, the average fixed cost is calculated as follows:=\frac{Total\ fixed\ cost}{Ot\ produced}

=\frac{5,000}{200}

= $25 per unit

Therefore, we can conclude that as the output of a particular firm increases, as a result the average fixed cost decreases.

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Huprey Co. is the defendant in the following legal claims. For each of the following claims, indicate whether Huprey should (a)
Ulleksa [173]

Answer:

  1. Record a liability.
  2. Disclose in notes.
  3. Have no disclosure.

Explanation:

A contingent liability should only be recorded if the likelihood of it happening is known and the value can reasonably be estimated.

In the first scenario, it is likely that Huprey will lose so the likelihood is known. The value can also be reasonably estimated to be $1,070,000 so this should be recorded as a liability.

In the second scenario, the likelihood is known but the value cannot be estimated. In such a case, simply disclose this possibility in the notes of the financial statement.

For the third scenario, the possibility of the liability being incurred is remote so there is no need to either record or disclose the liability.

8 0
3 years ago
  The brilliant colored ribs of Swiss chard can add excitement to your garnishes as a substitute for which of the following vege
mel-nik [20]
Carrots. For garnishing and presentation purposes, carrots and the brilliant colors of Swiss chard ribs are similar in color, texture and crispiness. On the other hand, if you are looking for a similar taste, celery can be a substitute for the ribs of Swiss Chard. It is mild in flavor and works great as a replacement.


7 0
3 years ago
Most of a distribution manager's decisions must balance cost reduction against which other benefit?
AVprozaik [17]

Answer: Superior customer service

Explanation:

Just took the quiz

8 0
3 years ago
What would 30 minutes before 8:40 be
viktelen [127]

<u>Answer:</u> 8:10

<u>Reasoning:</u> 8:40 - 0:30

6 0
3 years ago
11. At Stolen Horse Corporation, indirect labor is a variable cost that varies with direct labor hours. Last month's flexible bu
pochemuha

Answer:

5,220 hours

Explanation:

Lets summarize the information first,

Actual Hours = 5,140

Actual Indirect labor cost = $2,056

Spending Variance = $257 Unfavorable

Activity Variance = $28 Favorable

We can reverse work for budgeted labor hours, first for the standard rate,

Spending variance = Actual hours * Standard rate/hour - Actual Overheads

-257 = 5140x - 2056

x = (2056-257)/5140

x = 0.35/hour (This is the standard over head rate )

Activity Variance = Standard rate*Standard hrs - Standard rate*Actual Hrs

28 = 0.35y - 0.35*5140

Solving for y,

y = 1827/0.35

y = 5,220

So budgeted hours for Stolen Horse Corporation were = y = 5,220 hours

Hope that helps.

6 0
3 years ago
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