2. Which of the following statements is false? (You may select more than one answer.)a. The planning horizon for discretionary fixed costs is longer than the planninghorizon for committed fixed costs.b. Discretionary fixed costs can be cut in the short term if necessary, while committed fixed costs cannot be cut for short periods of time.c. As companies increasingly rely on knowledge workers, the labor cost associated withemploying these workers is often committed fixed as opposed to discretionary.d. A mixed cost contains both committed fixed and discretionary elements.

Q: 1.Choose all of the following statements that are true. a. Opportunity costs and sunk costs are not…

A: a. Opportunity costs are not shown in the financial statements of companies. While, sunk costs…

Q: Which of the following is true if a company can accept a special order without affecting its regular…

A: The following is true if a company can accept a special order without affecting its regular sales…

Q: 1)What is cost behavior analysis? and Why is cost behavior analysis important to management?…

A: A break-even point is a point or number of units at which all the revenues generated by the company…

Q: Break-even analysis is of limited use to management because a company cannot survive by just…

A: Breakeven analysis involves comparison of fixed cost, variable cost and sales price to derive the…

Q: 1.2.Choose TRUE or FALSE? Give short explaination? a. In marginal costing method, factory rent is…

A: In Marginal costing method, factory rent is absorbed into cost of production: FALSE Justification:…

Q: TRUE OR FALSE When absorption costing is used, management may be tempted to overproduce in each…

A: Under the absorption costing method, fixed overhead is considered as a product cost which is…

Q: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As…

A: The correct answer is option (3).

Q: Faced with a long-run make-or-buy decision, the manager should do all of the following except: a.…

A: Ans. While considering a make - or- buy decision a manager is expected to do a lots of study and…

Q: All other things the same, which of the following would be true of the contribution margin and…

A: The contribution margin is the part of sales revenue that remained after deducting the variable cost…

Q: If the incremental cost of producing an item in the short run is less than the outsourcing price,…

A: Outsourcing price is the price paid to someone else for making a product whereas in house cost is…

Q: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…

A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Contribution margin = Selling price - variable cost Break even point = Fixed cost / Contribution…

Q: The managing director argued:" I believe that activity-based costing would be an improve- ment, but…

A: SOLUTION-B I- REPORT OF EVALUATION OF LABOUR  HOURS AND ACTIVITY BASED COSTING TO THE DIRECTOR OF…

Q: Which of the following is FALSE regarding Variable Costing? O A. Net income will only change if the…

A: Variable costing is a technique of cost accounting where the fixed overheads are not included in the…

Q: Which one of the following statements about fixed costs is correct? -The average fixed cost per…

A: Fixed cost is the cost that remains constant irrespective of the level of production. A company…

Q: Do you agree with the following statements? Check only those with which you agree. Check All That…

A: Variable Costing refers to those costs which are directly related to the production and changes with…

Q: Which among the following is not a relevant cost for decision making? a. Cost of producing…

A: Relevant Cost refers to the incremental and avoidable cost of implementing a business decision.…

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: O…

A: Break even point: It is calculated by dividing the fixed cost by the contribution margin ratio.

Q: “A company should not allocate costs that are fixed in the short run to customers.” Do you agree?…

A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…

Q: As a manager, you have to choose between two options for new production equipment. Machine A will…

A:

Q: Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As…

A:

Q: The main trouble with variable costing is that it ignores the increasing importance of fixed costs…

A: Variable costing is a concept used in costing to ascertain the relation between sales, costs and…

Q: A basic tenet of variable costing is that period costs should be currently expensed. What is the…

A: Variable costs are those costs which changes with change in level of activity. Under variable…

Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…

A: Formula: Break even point = Fixed cost / Contribution margin. Contribution margin means deduction of…

Q: Which of the following can signal the need for a new product costing system? Select one: O a.…

A: Please find the answer to the above question below:

Q: Which of the following occurs if a company experiences a decrease in its fixed costs? Select one: a.…

A: Break-even point: In the accounting term break-even point is a condition where the income or profit…

Q: osts and long-run average costs? Explain the association between return to scale and economies of…

A: Economies of scale: This term refers to the cost advantage that a firm will gain as a result of a…

Q: Using your answer to Requirement 1, assume that Reshier Company is considering dropping any model…

A: Contribution margin is the difference between sales and variable expenses whereas Product margin is…

Q: Which of the following costs are always incremental and relevant in decision analysis?       a)…

A: Avoidable  costs are those costs that can be avoided if some production is stopped or outsourcing of…

Q: Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O…

A: Fixed cost indicates the cost which remains constant to a certain level of activity after which the…

Q: Which of the following is not an assumption of break-even analysis? a. A company is operating within…

A: Break-Even Point:  It is the point of sales at which entity neither earns a profit nor suffers a…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.