Answer:
a decrease in the total amount of units produced while fixed costs remain the same (that is why they are called fixed).
Explanation:
For example, company A produces 1,000 units with a total variable cost per unit of $10 plus $10,000 total fixed costs. Company A's total costs = $20,000
If company A's production level decreases to 950 units, their total costs = $19,500. Therefore a 5% decrease in production units only decreases fixed costs by 2.5%.
Company A's total costs were evenly split between variable and fixed costs, but sometimes either variable or fixed costs are proportionally larger. If the fixed costs of company A had been 67% of total costs instead of 50%, the 5% decrease in units produced would have reduced total costs by only 1.7%.
So the larger the proportion of fixed costs, a change in the number of units produced will have a smaller impact in the total costs of the company.
Answer:
LIFO method
Explanation:
The last-in, first-out (LIFO) inventory method values the cost of goods sold (COGS) using the price of the last purchases made by the company. This valuation method is accepted by the US GAAP and it is generally applied when the replacement costs are continuously increasing.
On the other hand, the IFRS (the international accounting standard) does not allows LIFO, it only accepts FIFO.
<span>Arcelormittal is using the gent production facility as the standard to compare it to the burns harbor facility. this means that he considers this the unit that is the norm, the bar, an he compares the other facility to it to see if it is below or above what he is considering to be average.</span>
Answer: c. Individuals who study music tend to be more intelligent.
Explanation:
The underlying assumption of the argument above is that the individuals who study music tend to be more intelligent.
This can be infered in the statement that "Generally, individuals that study music achieve more exceptional scores in subjects such as math and language arts". In this case, a connection was emphasized between academics and music.
Answer:
Comparability
Explanation:
Comparability is a characteristic of the information presentation of accounting information. It is required that the use of standardized accounting principles aid in making the accounts of two different enterprises to be compared to enable decision making among investors or for the allocation of investible resources. Without this comparability it becomes difficult to determine where resources would be put. Comparability can also be applied with the same company when it is able to compare its performance from one period to the other. This is also enabled by the use of standardized principles which have been consistently applied.
