Answer:
Option D- The unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.
Explanation:
The reason is that the company has batch level costs which are fixed indirect costs that are to be assigned to the product and are fixed amounts say $100. Also assume that there are two type of units, Unit A and B. Suppose that the batch cost any number of units of A produced will remain the same and similarly for product B. This means if the units produced of A are at 20 unit per batch and product B produced are 10 units per batch then Activity Based Costing says that the unit cost of batch cost absorbed in Product A would be $5 ($100 / 20) and that for product B would be $10 ($100 / 10). So this example better explains cost behavior of batch cost which is fixed for different levels of production.
This means the fixed cost per unit which decreases with increase in production will keep decreasing if the number of units produced starts increasing. In other words, the similar class of units if are produced in higher quantity then the cost per unit will be decreased due to decrease in fixed cost per unit and vice versa.
QBO advanced includes everything in QBO plus including the ability to track by class along with an exclusive features such as reporting powered by fathom, batch invoice import and custom user permissions
Answer:
To mitigate damages
Explanation:
When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.
He is avoiding a situation where the property is to be left unoccupied for a period of time.
Mitigating damages is a way of reducing further loss when one party breaches a contract.
In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.
Answer:
8,000= fixed overhead
Explanation:
Giving the following information:
Bell’s Shop can make 1000 units of a necessary component with the following costs:
Direct Materials $24000
Direct Labor 6000
Variable Overhead 3000
Fixed Overhead ?
The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.
Buy= 41,000/1,000= $41
Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead
41,000= 33,000 + fixed overhead
8,000= fixed overhead
