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3 years ago

Which of the following is an example of a mixed cost?

Business

1 answer:

My name is Ann [436]3 years ago

8 0

Answer:

Explanation:

Mixed cost is a cost that consists of both fixed cost and variable cost

Fixed costs are costs that do not vary with output. e.g., rent, mortgage payments, depreciation

Variable costs are costs that vary with production

An example of variable cost is electricity costs of $3 per kilowatt-hour. If the factory is locked down, no electricity cost would be incurred.

The rental costs of $10,000 per month plus $0.30 per machine hour of use consists of both a fixed cost and a variable cost

the fixed cost is 10,000

the variable cost is $0.30 per machine hour

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(c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mar

AysviL [449]

Answer:

Customer and Product Margin under Activity-based Costing and Traditional Costing

True Statements:

1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.

2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.

Explanation:

Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.

Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.

6 0

3 years ago

Bain Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an inexpe

pochemuha

<u>Solution and Explanation:</u>

Revenue 5000 multiply 6.6 33000

Unit Level Variable Cost:

Material Cost 5000 multiply 2.7 -13500

Labor Cost 5000 multiply 1.2 -6000

Manufacturing Cost 5000 multiply 1.2 -6000

Shipping and Handling 5000 multiply 0.3 -1500

Sales Commission 0

Contribution Margin 6000

Should be accepted as it will increase profitability by $6000

Part b1&b2: Cost to Make Cost to Buy

Material Cost 40000*2.7 108000

Labor Cost 40000*1.2 48000

Manufacturing Cost 40000*1.2 48000

Prod Supervisor Salary 72000

Purchase Cost 40000*6.72 0 268800

Total Cost 276000 268800

Should purchase from outside as cost is lower than making it

Part b3:

Cost to Make Cost to Buy

Material Cost 60000 multiply 2.7 162000

Labor Cost 60000 multiply1.2 72000

Manufacturing Cost 60000*1.2 72000

Prod Supervisor Salary 72000 72000

Purchase Cost 60000*6.72 0 403200

Total Cost 378000 475200

Should make in house as cost is lower

Part c: It should not be eliminated.

Elimination will decrease profitability by $72000 which is being allocated company wide facility exp. Before Allocation, actual profit is (168000-24000-72000)=$72000

Loss is because of allocation of facility expenese, which will be allocated on other segment.

5 0

3 years ago

You have an investment that will pay you 1.18 percent per month. a. How much will you have per dollar invested in one year? (Do

fiasKO [112]

Answer:

The correct answer for option (a) is $1.15 and for option (b) is $1.33.

Explanation:

According to the scenario, the given data are as follows:

Present value (PV) = $1

Rate of interest (R) = 1.18% per month

Time period (for option a) (t1)= 12 months

Time period ( for option b) (t2)= 24 months

So, we can calculate the future value by using following formula:

FV = PV × ( 1 + R )^t

(a). By putting value in the formula:

FV = $1 ( 1 + 0.0118)^12

= $1 × 1.1511610877

= $1.15

FV = PV × ( 1 + R )^t

(b). By putting value in the formula:

FV = $1 ( 1 + 0.0118)^24

= $1 × 1.32517184983

= $1.33

6 0

4 years ago

Which compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percen

emmainna [20.7K]

Answer:

Annual

Explanation:

The ANNUAL compounding periods will yield the lowest effective annual rate given a stated future value at year 5 and an annual percentage rate of 10 percent

4 0

3 years ago

13. The primary difference between GDP and Real GDP is

professor190 [17]

Answer:

I think option D is correct

3 0

3 years ago