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3 years ago

A method that estimates cost behavior by using just the highest and lowest volume levels is called the

1 answer:

7 0

A method that estimates cost behavior by using just the highest and lowest volume levels is called the: <span>High-low method.
In doing high-low method of cost estimation, we need to conduct some sort of experiment. First, we try the highest level of activity and record the total cost incurred, then we try the lowest level of activity and record the total cost incurred. After that, we used these two baselines to estimate the total cost of our production.</span>

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3 years ago

Activity-based management (ABM) is defined as: The implementation of an activity-based costing system in a service company, such

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The identification and selection of activities to maximize the value of the activities while minimizing their cost from the perspective of the final consumer of the product or service

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3 years ago

Equilibrium price is $10 in a perfectly competitive market.For a perfectly competitive firm,MR = MC at 1,200 units of output.At

White raven [17]

Answer:

A) shut down; losses; $15,600

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry. Firms earn zero economic profit in the long run.

If in the short run, price is less than average variable cost, the firm should shut down. In this question, price ($10) is less than average variable cost ($18). The firm should shut down in the short run.

Profit or loss = Total revenue - Total cost

($10-$23) x 1200 = -$15,600

The firm is earning a loss because average total cost in greater than price.

I hope my answer helps you

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3 years ago

The following information pertains to the Flying Fig Corporation: Total Units for information given 5,000 Fixed Cost per Unit $

valentina_108 [34]

Answer:

Break-even point (dollars)= $1,000,000

Explanation:

Giving the following information:

Total Units for information given 5,000

Fixed Cost per Unit $100

Selling Price per Unit $500

Variable Costs per Unit $125

Target Operating Income $250,000

Break-even point (dollars)= (fixed costs+ profit)/ contribution margin ratio

Fixed costs= 5,000*100= 500,000

Break-even point (dollars)= (500,000 + 250,000)/ [(500 - 135)/500]= $1,000,000

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3 years ago