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
Ad libitum [116K]
2 years ago
15

Q2. Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or

variable costs: advertising expenditures, fuel, interest on company-issued bonds, shipping charges, payments for raw materials, real estate taxes, executive salaries, insurance premiums, wage payments, sales taxes, and rental payments on leas
Business
1 answer:
Lyrx [107]2 years ago
3 0

Answer:

Variable costs vary with the volume of production and can be changed in the short run.

Fixed costs do not vary with the volume of production and cannot be changed in the short run. Only in the long run can they be changed.

Variable costs:

  • Advertising expenditures
  • Fuel
  • Shipping charges
  • Payments for raw materials
  • Wage payments
  • Sales taxes

Fixed costs:

  • Interest on company issued bonds
  • Real estate taxes
  • Executive salaries
  • Insurance premiums
  • Rental payments on leased office machinery.
You might be interested in
Scenario: Fiscal Policy Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no tax
nika2105 [10]

Answer:

less than the government spending multiplier

Explanation:

Given :

Percentage spends  by a households for the increase in the income = 75%

So the mpc = 0.75

Potential output = 600 billion arcs

The government multiplier is = $\frac{1}{1-0.75}$

                                                $=\frac{1}{0.25}$

                                                = 4

The tax multiplier is = $\frac{c}{1-c}$

                                 $=\frac{0.75}{0.25}$

                                 = 3

Thus we see that the tax multiplier is less than the government spending multiplier.

7 0
3 years ago
Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other proj
VashaNatasha [74]

Parametric estimation is a  techniques that uses a statistical relationship to calculate cost or duration based on historical data and other project parameters

Parametric estimation is a quantitative method (statisitical relationship) used to estimate the project cost, resources, and duration based on historical data and other project parameters.

Parametric estimation models are used when:

  1. There is precedent
  2. The model is a unit hence can be scaled up
  3. The parameters required are easily quantifiable

While the other options of this question is incorrect because:

b. grass roots estimating

Cost estimation done by the individuals who will be performing the task being estimated.

c. empirical estimating

Estimation method in which the data is obtained using empirical formulas. It is usually based on an amalgamation of historical data, assumptions, guesses, and personal experience.  

d. analogous estimating

Also called top-down estimating, this is a technique that involves comparing previous projects, personal experiences and cursory cross-referencing observed costs to estimate time resources required. This technique is most useful in the absence of quantifiable data.

You can learn more about project estimation at

brainly.com/question/24322317

#SPJ4

3 0
2 years ago
The justification for a company initially recording prepaid rent in either an income statement or balance sheet account is that:
Levart [38]

The justification for a company initially recording prepaid rent in either an income statement or balance sheet account is that a<u>t the end of each year, the</u><u> account balances </u><u>are revised so that they accurately represent the c</u><u>urrent situation.</u>

This is further explained below.

<h3>What is an income statement?</h3>

Generally, When a business first records its prepaid rent, it should do so in either an account on its income statement or one on its balance sheet.

The reason for this is because, at the end of each year, the balances of these accounts should be revised so that they more accurately reflect the situation at the moment.

In conclusion, An income statement, also known as a profit and loss account, is one of the financial statements that a business maintains.

It details the revenues and costs that the firm incurred during a certain time period. It describes the process through which the revenues are converted into the company's income or profit after taxes.

Read more about income statements,

brainly.com/question/28035395

#SPJ1

<u></u>

8 0
1 year ago
Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is participating in entreprene
kiruha [24]

Answer:

Dave is participating in the factor market.

Explanation:

Dave gets a job at a grocery store, which pays him an hourly wage in exchange for his labor. Dave is providing his factor services to the grocery store and earning factor income in return.  

The grocery store is paying Dave a factor payment as an hourly wage in exchange for labor. So we can say that Dave is involved in the factor market.  

A factor market can be defined as that segment of the economy where the factor services are exchanged in exchange for factor payments.

6 0
3 years ago
O
Solnce55 [7]
3.Doing everything on your own.
8 0
3 years ago
Read 2 more answers
Other questions:
  • Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in t
    13·1 answer
  • Communication skills are unimportant in today’s technologically advanced world. Please select the best answer from the choices p
    5·2 answers
  • Michelle symonds suggested a set of seven deadly sins of project management, that is, the common mistakes that companies commit
    12·2 answers
  • A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $1
    14·1 answer
  • If there is a substantial increase in bad debts, what might this mean?
    10·1 answer
  • Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of the following costs s
    6·1 answer
  • The following selected information is from Princeton Company’s comparative balance sheets. At December 31 2017 2016 Common stock
    15·1 answer
  • SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, t
    12·1 answer
  • An acre lot was purchased for $100,000. A $500,000 office building was erected. The building is placed in service in May. Find t
    15·1 answer
  • Rorry Company uses a job cost system. Labor costs for the period were $21,000, of which $3,000 were indirect. The journal entry
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!