9) The main sources of cost-push inflation are increases in A) aggregate demand and real wage rates. B) money wage rates and aggregate demand. D) real wage rates and the cost of raw materials. C) money wage rates and the cost of raw materials.
Q: a) Classify each cost as either variable or fixed with respect to the number of units produced and…
A: Variable costs are those costs which varies with output. It must be noted here that variable cost…
Q: Which one of the following is a fixed cost? a. Raw material costs b. Salary with commission c.…
A: A fixed cost is one that does not adjust in the short term, even though a company's sales volume or…
Q: Why do you think the change in the index of labor cost per unit of output is a useful lagging…
A: A lagging indicator is an observable variable whose direction changes after the interest’s target…
Q: :The change in total cost from producing another unit of output equals the following Average total…
A: The marginal cost of production is the change in total production cost that comes from making or…
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A: Cost driver: A cost driver is the root cause of a cost and total cost is incurred by its effect.
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A: Opportunity costs : The benefit foregone by the company by employing the resource in other…
Q: Under the contribution income statement, a company’s contribution margin will be: Higher if fixed…
A: Contribution margin:
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A: Fluctuating demand In reaction to shifting economic conditions and consumer spending trends, demand…
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A: EOQ is economic order quantity which is optimal order quantity
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A: Cost refers to the expenditure incurred by an individual or entity in process of creation of goods…
Q: Which of the following describes the behavior of the fixed cost per unit? Group of answer choices…
A: Fixed cost is defined as the cost independent of the good produced or service rendered in an entity.…
Q: Throughput margin is equal to revenues minus direct materials and direct labor of the cost of goods…
A: Throughput margin = sales revenue - material cost .
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A: Approximating the allocation of fixed costs based on actual output and actual costs so it is not…
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A: Definition: Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…
Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…
A: Total fixed cost remains same at all level of output.
Q: 2) What is measured along the horizontal axis in a graph of the production possibility frontier?…
A: The Measured along the Horizontal Axis in a graph of the production possibility frontier is as…
Q: why does fixed costs remain the same in total dollar amount but increases per unit as the level of…
A: Fixed costs means those costs which remain fixed in total dollar amount as the level of activity…
Q: Which of the following best describes a variable cost? A cost that: a. Represents a fixed…
A: Variable cost is the cost incurred during the production of units which will be directly…
Q: Which of the following is NOT an example of Prime Cost? A. Manufacturing wages B. Direct wages C.…
A: Direct cost: It refers to the cost that is incurred on the production and this cost is traceable on…
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A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: Which of the following may form the basis for the price a company (working at full capacity) should…
A: There are several type of costs that are being incurred in business. These are fixed costs, variable…
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: What is the high-low method used to estimate? a. variable costs and production capacity b. total…
A: The high-low method is a method using which the variable cost per unit and total fixed cost is…
Q: 20-Which of the following term is used to denote, the response of cost to the change in the volume…
A: Solution:- Introduction:- Costs are classified into the following types as follows:- Fixed costs…
Q: QUESTION 1 Which of the following statements describes the behaviour of variable costs? O a. They…
A: Option a is correct.
Q: When volume of production decreases fixed cost per unit will
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Q: The marginal product of labour is defined as the ____.
A: Labour is one of the important asset for any organization. Labor Cost is Part of Prime cost apart of…
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A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods…
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A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…
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A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…
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A: The correct option is B. slopes downward to illustrate that a decrease in the real wage decreases…
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A: Normal Costing:In cost accounting, the accountant finds production cost that is based on the…
Q: Hi, How do you calculated variable production cost per unit?
A: Answer:Variable production cost per unit is calculated by dividing Total variable production costs…
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A: Weighted average cost of capital is the firm's cost of capital which is based on proportion of each…
Q: Which of the following describes the behavior of the variable cost per unit?
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…
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Q: Which of the following best describes a fixed cost? A. It may only change in total when such…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: When production increases, the total fixed cost will
A: Fixed cost is a type of costs which remains fixed irrespective of production levels. Whether…
Q: Which of the following correctly describes the term cost driver? a. The inflation rate which causes…
A: Cost driver are the compotents that are directly related to the product that determine the cost of…
Q: What is happening to average costs when marginal cost is greater than average cost at a specific…
A: When marginal cost is greater than average cost (including average variable cost or average total…
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: Help question 37
A: False. Labor efficiency variance measures the difference between the Actual labor hours worked and…
Q: What's the expected profit at break-even in a cost-volume-profit analysis
A: Introduction : The cost volume profit analysis examines the relationship between the variable and…
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- If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (latest) for $12, which of the following statements is true? A. This is an inflationary cost pattern. B. This is a deflationary cost pattern. C. The next purchase will cost less than $12. D. None of these statements can be verified.If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (latest) for $12, which of the following statements is true? A.This is a deflationary cost pattern. B.The next purchase will cost less than $12. C.This is an inflationary cost pattern. D.None of these statements can be verified.As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or smallernet income in a period of rising prices? What is the comparativeeffect on net income in a period of falling prices?
- In a hyperinflationary economy, amounts not expressed to the measuring unit current at the end of reporting period are restated by applying: a. General price index b. Specific price index c. Both general price index and specific price index d. Either general price index or specific price indexWhich of the following would be expected to result in a reduction in actual net profit compared to budgeted net profit in an accounting period? Please select all that apply. A decrease in the actual selling price of products compared to the budgeted selling price of products without a corresponding decrease in the actual costs of producing those goods. An increase in actual expenditure on non-current assets compared to budgeted expenditure on non-current assets. A more productive workforce than budgeted. An increase in the actual cost of raw materials compared to the budgeted cost of raw materials without a corresponding increase in the actual selling price of goods produced.1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining after cost of goods sold has been deducted from sales revenues. B. The amount remaining fixed costs have been deducted from sales revenue. C. The amount remaining after fixed costs have been deducted from variable costs. D. The amount remaining after variable costs have been deducted from sales revenue. 2. Which of the following financial statements reports information as of a specific date? Select one: A. Statement of Changes in Equity. B. Statement of Profit or Loss and other Comprehensive Income. C. Statement of Cash Flows. D. Statement of Financial Position. 3. The following are objectives of budgeting EXCEPT: Select one: A. Compare organisational actual achievement with planned goals. B. Ensuring departments within an organisation operate as a team. C. Establishing and communicating organisational goals. D. Developing appropriate high technology information system for an…
- Which of the following best describes a fixed cost? A. It may only change in total when such change is unrelated to changes in production volume (i.e. inflation). B. It may change in total when such change is related to changes in production volume. C. It is constant per unit of change in production volume. D. It may change in total when such change depends on production volume within the relevant range. QUESTION 2 Period costs are best described as those costs: A. Incurred periodically (i.e. not on a regular basis). B. Incurred as a result of activities that occur inside the production building. C. That increase as a result of a change in volume for a particular period. D. Incurred as a result of activities that occur outside of the production building. QUESTION 3 What is the result when the contribution margin ratio increases? A. Break-even point increases B. Fixed Cost…In the cost-volume-profit analysis, income taxes a.increase the sales volume required to break even. b.are treated as a variable cost. c.are treated as a fixed cost. d.increase the sales volume required to earn a desired profit.True or false. economic order quantity occurs where the total cost total annual carrying equals the total annual ordering cost
- Which of the following is not an assumption of the basiceconomic-order quantity model?A. quantity discounts are availableB. ordering or setup costs are constantC. lead time is constantD. annual demand is constant and knowWhy do you think the change in the index of labor cost per unit of output is a useful lagging indicator of the macroeconomy?Under variable costing, which of the following costs are assigned to inventory? Variable Selling & Administrative Costs variable Factory Overhead Costs (A) Yes No b)No yes c)Yes Yes d) No No 8.Which of the following would appear on both the budgeted income statement and on the schedule of expected cash disbursements for operating expenses? (A) Depreciation expense (B) Rent expense (C) Sales commission expense (D) Both B and C 9.Which of the following is not an underlying assumption of the cost-volume-profit graph? (A) Expenses are categorized into fixed and variable (B) Revenues and expenses are linear over the relevant range (C) Efficiency and productivity will be unchanged (D) Sales mix will not be…