Answer:
C. In a pure fixed cost structure, the unit selling price and unit contribution margin are equal.
Explanation:
In Accounting, cost behavior is an indication of how costs in a firm reacts to change in activity levels. There are basically three types of cost behavior; fixed costs, variable costs and semi-variable costs.
The relationship between cost behavior and profits are;
- A pure fixed cost structure offers more security if volume expectations are not achieved.
- In a pure variable cost structure, when revenue increases by $1, so do profits.
- A pure variable cost structure offers higher potential rewards.
This is a true statement if that's what you were looking for
Answer:
the total general and admin expense is $8,200
Explanation:
The computation of the total general and admin expense is given below:
Administrative salaries $4,300
Other cash administrative expenses $1,700
Depreciation $2,200
General and administrative expenses budget $8,200
hence, the total general and admin expense is $8,200
We simply added the above 3 items so that the correct value could come
Answer:
lessen the effect of exchange rate changes by sourcing from where input costs are low
Explanation:
Answer:
A. True
Explanation:
An organization would usually measure the volume of its orders in order to meet up with demand while also making sure that the cost per order is maintained at the nearest minimum. The tool used to measure the volume of frequent orders is Economic order quantity(EOQ) .
When inventories are ordered, there will be continuous movement of inventory say from Q(order amount) to zero. This means that the average inventory is Q ÷ 2. Also, the inventory costs for each period is the same as average cost(Q/2) multiply by length of the period.
