1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
postnew [5]
3 years ago
5

Your company incurs a cost for fire insurance, which in the short run, is fixed. What happens to the cost in the long run? In th

e long run the cost of fire insurance...
Business
1 answer:
amid [387]3 years ago
3 0

Answer:

The correct answer is it becomes variable cost.

Explanation:

In the short run there are fixed costs and variable costs which sum up the total costs incurred. This is because in short run not all factors are variable, some factors are fixed as well. So, expenses on fixed factors come under fixed and those on variable factors come under variable costs.

In the long run though, all the factors are variable. All factors can be changed. So there are no fixed costs in the long run run. All the costs incurred on all factors become variable costs.

You might be interested in
Income Statement Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March fo
IrinaVladis [17]

Answer:

Total Expense:      $ 347,000

Income:    $ 135,000

Explanation:

<u><em>Income Statement Imaging Services </em></u>

<u><em>For the Month Ended March 31, 2018</em></u>

Fees earned                                                                          $482,000

Wages expense                                      $ 300,000

Rent expense                                                $41,500

Supplies expense                                           $3,600

Miscellaneous expense                                   $1,900          

Total Expenses                                                                         $ 347,000

Income                                                                                       $ 135,000 Wages, rent , supplies and miscellaneous expenses are totaled and deducted from the fees earned. Fee earned is the revenue and the expenses are deducted from it. By deducting expenses from revenue we get the income.

7 0
3 years ago
Read 2 more answers
Comfort Corners Home Furnishings uses labor and machinery to transform wood, plastic, metal, and cloth into comfortable chairs,
Alinara [238K]

Answer:

Form Utility.

Explanation:

This is the process of designing a product to target a specific client's needs or wants. Customers' desires are incorporated into the features and benefits the products offer to customers. As in the above company. Various designs of furniture have been designed to appeal to customers needs and wants in home furnishing.furnishings.

3 0
3 years ago
Read 2 more answers
Hey people i have nothing to sy so yeah HI
stira [4]

Answer: hi

Explanation:

6 0
2 years ago
Read 2 more answers
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following:
andrew-mc [135]

Cost of inventory destroyed in fire is $1,140,000

<u>Explanation:</u>

The loss from fire to inventory can be calculated by finding the cost of the inventory on the may 4 , 2021.

Cost of sales = Sales – profit on sales

= 9000000-1800000

=$7200000

The value of inventory on the may 4 = opening inventory on January 1 + purchases + freight in – cost of sales

=1980000+5880000+480000-7200000

=$1,140,000

Cost of sales is referred to the amount that is incurred in producing the goods. Cost of sales is included in the sale price of the product to earn a profit beyond the cost. So sales includes cost and profit which can be used to find the cost of sales.

4 0
3 years ago
Joe's Tasty Burger has determined that its production facility has a design capacity of 400 hamburgers per day. The effective ca
Nat2105 [25]

Answer:

Design Capacity Utilization= 75%

Production efficiency = 120%

Explanation:

Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there

1. The Capacity Utilization = The Actual Output/ Design Capacity

Actual Output= 300 hamburgers a day

Design Capacity = 400 Hamburgers a day

Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100

= 75%

2. The Efficiency of the production = The Actual Output / The Effective Capacity

Actual Output = 300 Hamburgers a  day

Effective Capacity = 250 hamburgers

= 300 Hamburgers/ 250 Hamburgers x 100

= 120%

Conclusion

First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.

3 0
3 years ago
Other questions:
  • Jeffreys Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 los
    11·1 answer
  • The demands of ethics and etiquette tend to require the use of​________ to communicate with appropriate sensitivity and care.
    10·1 answer
  • When estimating the cost of equity by use of the bond-yield-plus-risk-premium method, we can generally get a good idea of the in
    10·1 answer
  • What term represents the worldwide movement toward economic
    6·1 answer
  • Which of the following choices is not considered a revenue producing business enterprise?
    6·1 answer
  • you learned a variety of fundamental economic concepts. Identify two of the following principles, and apply them to the real-wor
    7·1 answer
  • Vault-Tec. has annual fixed costs excluding depreciation of $1,000,000 and variable costs that are 75% of sales. If depreciation
    8·1 answer
  • In order for a broker to write an offer for a buyer on a HUD-acquired property, the broker must use a:
    15·1 answer
  • Joseph is instructed by his employer, Helen, to go to the local donut shop during his lunch break and purchase six-dozen donuts
    5·1 answer
  • Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!