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Combine the different component costs to determine the firm’s WACC.
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- What is the scattergraph method, and why is it used? Why is a scattergraph a good first step in separating mixed costs into their fixed and variable components?What is meant by a product’s contribution margin ratio? How is this ratio useful in planningbusiness operations?Identify the flow of cost in manufacturing firm step by step and how it is related to prime costand conversion cost?
- Why might the number of products in a joint - cost situation differ from the number of outputs? Give an example.Which two categories of costs influence the choice of how manystorage facilities a firm might have and where they are located?Define the term net realizable value, and explain how this concept can be used to allocate joint costs.
- Identify the output and input variables in both the bottom-up and top-down strategies to cost estimation.Companies benefit greatly from the use of a standard cost system, and the statement?What is meant by a products contribution margin ratio and how is this ratio useful in planning business operations?
