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
laila [671]
3 years ago
9

Explain the difference between fixed and variable costs and give two examples of each. Can a company budget for variable costs?

Explain
Business
1 answer:
galben [10]3 years ago
5 0

Answer:

Fixed cost in an organization does not change and is fixed while the variable cost keep changing if the production is increased.

Explanation:

Fixed cost are said to be that cost which does not change with production level for a certain limit. Let us suppose there is no change in the rent amount if we have only factory for the production of goods.

But the variable cost are those cost which increases as production increases. More will be the variable cost when the production will be more. Also for per unit basis, the variable cost remains the same.

Fixed cost are not important in decision making if there is an excess of capacity available.

For example,

Direct labor, direct material -- variable cost

Salary of supervisor, rent of factory -- fixed cost

Even though there is not much change in the variable cost, like for suppose material price increases, a company can still make a budget that is based on the past experience and predicting the market prices. Similarly, if there is a machine that uses three units of direct material for a piece if finished product, which is not going to change in the future. Thus the company can make a budget.

You might be interested in
Suppose the economy is experiencing an output gap of –3%. a. Select each response that indicates how monetary policy or fiscal p
igor_vitrenko [27]

Answer:

Suppose the economy is experiencing an output gap of –3%

a. Monetary policy or fiscal policy can be used to raise actual output toward potential output when:

The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP.

The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP.

b. The policies identified in part a,

can be used together to raise actual output toward potential output.

Explanation:

Investment-Savings (IS) curve shows all the levels of interest rates and output (GDP) at which an economy's total desired investment (I) equals its total desired saving (S).  This equilibrium can be achieved at a level of interest rate that maximizes output.  The IS curve slopes downward, and to the right because at a lower interest rate, investment is higher, which produces more total output (GDP) for the economy.

7 0
3 years ago
Assuming the Coase theorem applies, an efficient allocation of a resource will result ... A. only if the government acts to inte
Mamont248 [21]

Answer:

B. through negotiations between the parties involved.

Explanation:

  • correct answer is through negotiations between the parties involved because According to Coase theory, priority rights are best defined by negotiation between the parties involved and there is no transaction cost in negotiations.                            
  • The Coase theory states that when transaction costs are low, both parties can negotiate and reach an effective outcome in the presence of an outsider.

6 0
3 years ago
What are the advantages of electronic communication
fiasKO [112]

Answer:

IT HEPLS TO SOLVE ECONOMIC PROBLEMS ABOUT TRADITIONAL SUPERSTATION

5 0
3 years ago
Read 2 more answers
After the events of 9/11, a friend suggests to you that the Central Intelligence Agency (CIA) and Federal Bureau of Investigatio
bazaltina [42]
A. Hindsight bias- also known as the knew-it-all-along phenomenon or creeping determinism, refers to the common tendency for people to perceive events that have already occurred as having been more predictable than they actually were before the events took place.
7 0
3 years ago
How did the relationship between Parliament and the Restoration monarchs, Charles II and James II, change following the English
Tatiana [17]

Answer:

The monarchs continued to challenge Parliament's authority.

Explanation:

Following the English Civil War, tensions between the monarchs and Parliament began to grow. Queen Elizabeth did not leave any heir, therefore, James I began the Stuart Dynasty. James I believed in Divine Rule, which was in oppose of Queen Elizabeth's rule who worked with Parliament.

After the English Civil War, the monarchs continues to challenge Parliament's authority. During Restoration monarchs, Charles II and James II, Parliament and monarchs were in conflict with each other.

Therefore, option C is correct.

4 0
2 years ago
Read 2 more answers
Other questions:
  • Match the scenarios with the economic concepts they illustrate.
    9·2 answers
  • Crop-share lease is a kind of land lease, where a specified percentage of the crop is paid to the land owner for use of the land
    9·1 answer
  • Assume that we are looking at the local market for pizza. Assume that the equilibrium price is $20 and the equilibrium quantity
    11·1 answer
  • Norris Company declared cash dividends of $60,000 during the year. Cash dividends payable were $20,000 at the beginning of the y
    8·1 answer
  • Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinc
    6·1 answer
  • Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in
    10·1 answer
  • Hidalgo is primarily liable on a promissory note. Because of this, he: a. is required to pay, unless he has a valid defense to p
    14·1 answer
  • Linger Products uses a two-stage allocation method to assign costs to its products. The following information has been provided
    8·1 answer
  • Matthew manages the sales team at an information technology (IT) firm. His focus is to conduct business in accordance with his f
    11·1 answer
  • Consider the following for the costs of a pair of jeans: Direct material costs: $2 per yard and 3 yards are needed Direct labor
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!