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Ivanshal [37]
3 years ago
6

In a flexible budget, what will happen to fixed costs as the activity level increases?A. The fixed cost per unit will remain unc

hanged. B. The fixed cost per unit will increase. C. Fixed costs are not included in a flexible budget. D. The fixed cost per unit will decrease. E. Total fixed cost will increase.
Business
2 answers:
S_A_V [24]3 years ago
4 0

Answer:

D. The fixed cost per unit will decrease.

Explanation:

A flexible budget is a budget that adjusts or flexes with changes in volume or activity. For costs that vary with volume or activity, the flexible budget will flex because the budget will include a variable rate per unit of activity instead of one fixed total amount.

Fixed costs are costs that will remain constant within a relevant range. As the activity level increases, fixed cost per unit decreases.

spayn [35]3 years ago
3 0

Answer:

D. Fixed cost per unit will decrease.

Explanation:

In a flexible budget, those expenses that do not change within a sales range appear primarily as fixed costs. One example is maintenance and cleaning. The costs that change significantly based on sales appear primarily as variable costs and show as percentages of sales.

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How would you make a convincing case that open trade in goods and services as well as free flow of foreign direct investment wil
lidiya [134]

Answer:

Free trade of goods and services benefits all countries in the world. This is because of the concept of comparative advantage that tells us that some countries are better at providing specific goods and services than others.

For example, Japan is made up of relatively small islands that are very mountainous, forested, and lacking in natural resources. Besides, the country has a large population concentrated in the few flat areas. This essentially means that Japan is severly lacking in agricultural land and raw materials, and has to import most of its food, oil, natural gas, among other things. This is why the country has specialized in electronics, automobiles, and pharmaceuticals.

Brazil is the opposite: a very large country with hundreds of thousands of square miles fit for agricultural production. The country is a great exporter of soy, rice, sugar, and oil. However, the brazilian industry is not competitive, and most of its exports are to neighboring Argentina.

Without free trade, Japan could hardly feed itself, or it would do so with great difficulty. At the same time, Brazil would have a large surplus of food and raw materials, but its citizens would lack access to high-tech Japanese goods such as Toyota cars, or Sony electronic devices. Both countries would be worse-off.

5 0
3 years ago
Elizabeth recently purchased 115 shares of a company for $10350 ($90 per share). The company has been doing well. This year, she
Fed [463]

Answer:

$90

Explanation:

Option B is wrong because $1,035 is the dividend received from the company by Elizabeth.

Option C is wrong because $270 is the current market price of each share.

Option D is incorrect because $10,350 is the common stock value of 115 shares.

Option A is correct because $90 is Elizabeth's per-share basis in the company for which she received a dividend. Share's price increased to $270 after success.

7 0
2 years ago
Which feature helps business address customer grievances
meriva
A customer service representative would be a feature commonly used by huge companies in addressing the customers' issues with regards to their products and services. Furthermore, customer feedback is very important because the company would have the idea on how to improve their service or product.
8 0
3 years ago
Read 2 more answers
Altoona Corporation has two divisions, Hinges and Doors, which are both organized as profit centers. The Hinge Division produces
Luden [163]

Answer:

Minimum transfer price = $21

Explanation:

<em>Transfer price is the price at which goods are exchange between branches or divisions of the same group</em>

<em>Where  a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows</em>

Minimum transfer price = Variable cost

Note that the fixed of $12 per unit (i.e 33-21) is irrelevant for this purpose, whether or not Hinges produces, it will be incurred either way.

It is worthy of note that there is no opportunity cost associated with any transfer to the Doors division because Hinges is currently having excess capacity.

Therefore, any offering price equal to or above the variable cost of $21 would be acceptable and optimize the group profit.

Hence, the minimum transfer price = $21

3 0
3 years ago
You have $11,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with
iogann1982 [59]

Answer:

  • Invest $8,470 in X
  • Invest $2,530 in Y.

Explanation:

The following expressions can be formed;

Let x and y be the proportions

x + y = 1

0.15x + 0.1y = 13.85%

Expressing y in terms of x;

x + y = 1

y = 100 - x

0.15x + 0.1 ( 1 - x) = 13.85%

0.15x + 0.1 - 0.1x = 13.85%

0.05x = 13.85% - 0.1

x = 13.85%0.05 - 0.1/0.05

x = 77%

Invest 77% in X = 77% * 11,000

= $8,470‬

Invest in Y

= 11,000 - 8,470

= $2,530

5 0
3 years ago
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