Answer:
The correct answer is the definition of fixed and variable costs.
Explanation:
The cost of production of a company can be subdivided into the following elements: rents, wages and wages, depreciation of capital goods (machinery and equipment, etc.), the cost of raw materials, interest on operating capital , insurance, contributions and other miscellaneous expenses. Different types of costs can be grouped into two categories: fixed costs and variable costs.
Fixed costs
The fixed costs are those that the company necessarily has to incur when starting its operations. They are defined as costs because in the short and intermediate term they remain constant at different levels of production. As an example of these fixed costs, executive salaries, rents, interest, insurance premiums, depreciation of machinery and equipment and property taxes are identified.
Variable costs
Variable costs are those that vary with the volume of production. The total variable cost moves in the same direction of the production level. The cost of raw material and the cost of labor are the most important elements of variable cost.
The decision to increase the level of production means the use of more raw material and more workers, so the total variable cost tends to increase production. The variable costs are, then, those that vary as production varies.
Answer:
C) does not have a close substitute.
Explanation:
A monopoly is a market structure where there is only a single seller but many buyers. The seller therefore has more bargaining power over buyers and is therefore the price maker; a monopolist decides and sets the price of the product. Since there is only one seller, it means that the good does not have close substitutes. However, a multi-product monopolist could sell goods or services that are close complements.
Answer:
The recognized gains upon the sale is $2000.
Explanation:
As the cost of purchase of the equipment to Mathew is $15000 and the sale proceeds received is $17000. The gain is actually calculated as follows;
Gain = Sale proceeds –Cost of equipment
Gain = Matthew sells the equipment to an unrelated party for $17,000 – Matthew bought equipment for its fair market value of $15,000
Which is $1700 -$1500 = $2000
Therefore the recognized gains upon the sale is $2000.
A cost that would be included in product costs under both
absorption costing
and variable costing is: full costing.
A managerial accounting technique known as "
absorption costing
," also known as "full costing," is used to record all expenses related to producing a specific product. This strategy accounts for both direct and indirect costs, including direct materials, direct labor, rent, and insurance
.
Anything that is a direct cost of creating a good is included in absorption costing's cost base. Fixed overhead costs are included
absorption costing
in the product costs under
absorption costing
as well. Wages paid to workers who physically produce a product, raw materials required in production, and all overhead expenditures (such as all utility bills) incurred
absorption costing
during production are a few of the costs related to product manufacturing
.
Learn more about
absorption costing
on:
brainly.com/question/14347350
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Answer: a form of government expense that is not made in exchange for a currently produced good or service.
Explanation:
Transfer payment are the goods or services that are supplied to the residents of a country. They're the form of government expense that is given to people in the society and such payments are not made due to the exchange of goods or services.
Examples of transfer payments include unemployment benefits, Social Security, etc. The reason behind transfer payments is to help in the redistribution of income and to help the less privileged in the society.
