Answered: Google has both fixed and variable…

Business

Accounting

Google has both fixed and variable costs. Why are fixed costs depicted as a horizontal line on a CVP chart?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8CDQ: Which of the following graphs best illustrates fixed costs per unit as the activity base changes?

See similar textbooks

Related questions

Q: Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs…

A: CVP Chart: Cost Volume Chart (CVP) chart refers to a graphical representation of the cost-volume…

Q: How does the Modified Accelerated Cost Recovery System (MACRS) givetaxpayers a break?

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: On a graph, the Total Variable costs line appears to be horizontal in nature. True False

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Obtain and study a CVP graph and answer the next multiple choice 22. Select the correct statement…

A: Cost-Volume-Profit analysis: Cost-Volume-Profit (CVP) analysis is a managerial accounting technique…

Q: If the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the…

A: Economic Order Quantity is a model which aims to minimize the total inventory cost including the…

Q: 1. How will you allocate the fixed costs across the products?

A: Break-even refers to covering all the costs without making a profit. At break-even point company…

Q: from fixed cost. Thank yo

A: Basis of difference Variable cost Fixed Cost 1. Definition The cost which changes with…

Q: Select the correct statement concerning the cost-volume-profit graph at right: a. The point…

A: BEP: (Break-even point) It is the number of units that are sold that could result in a situation of…

Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost

A: The cost function depicts the costs that will be incurred at various levels of activity Cost…

Q: Are there situations where Google can use process costing? Identify at least one and explain it.

A: Process costing is an accounting strategy that follows and collects coordinated costs and apportions…

Q: Differentiate variable cost from fixed cost Can you make a table for me, thank you

A: Variable cost is also known as direct cost where as Fixed cost is known as Supplementary cost. There…

Q: Give me an example How Efficient are Graphic Techniques - Scatter Charts for Estimating Costs?

A: Meaning of Scatter Graph Method Scatter graph method is a graphical technique of separating fixed…

Q: Select the correct statement concerning the cost-volume-profit graph at right: At point B, profits…

A: In order to determine the Breakeven point (units), the total fixed cost is required to be divided by…

Q: Prepare a flexible b udgetwith more than one costdriver.

A: Prepare a flexible budget with more than one cost driver using own data:

Q: Within the relevant range, if there is a change in the level of the cos a. Total fixed costs and…

A: Fixed cost will change and total cost will remain the same.

Q: Identify the relative advantages and disadvantages of basing transfer prices on total costs,…

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at the origin. the level…

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Which of the following statements regarding graphs of fixed and variable costs is true? (01) (a)…

A: Variable costs means those type of costs which change in same direction in respect to production. If…

Q: On a CVP graph, the total cost line intersects the vertical (dollars) axis at a. the origin. b. the…

A: Definition: Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

Q: ILLUSTRATE THE VARIOUS COST CLASSIFICATIONS. (PLEASE INCLUDE PHOTOS OR TEXT FOR THE EXPLANATION)…

A: Cost refers to an expenditure incurred by an organization in order to manufacture and selling of…

Q: Which of the following statements regarding graphs of fixed and variable costs is true? (a)…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…

A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…

Q: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

Q: The graph of a variable cost when plotted against its related activity base appears as a a.circle…

A: Variable cost is a cost that increases with the increase in the level of production of a commodity.…

Q: (c) Describe a situation where net profit under variable costing is higher than absorption JIT…

A: Variable costing is a costing method in which overhead is incurred in the period of production of…

Q: Find DL and DM Price Efficiency Volume Show me what is TO, SQ, SP, AO, AQ, AP

A: In a manufacturing concern there are main four variances that are used, they are: 1. Direct Material…

Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…

A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…

Q: hich of the following statements related to CVP chart is not true? To determine the variable cost…

A: This option is not true :- E. The intercept between the total cost line on a graph and the y axis…

Q: Differentiate variable cost from fixed cost. Please help me I really need the answer, clear…

A: Cost accounting is the one that is used to calculate the production cost per unit or in total a…

Q: Differentiate variable cost from fixed cost. Hope you

A: The cost function is a function that is used to show how production expense will change at different…

Q: Which of the following statements related to CVP chart is not true? O a. None of the given answers.…

A: The question is multiple choice question.The question is related to cost volume profit analysis.…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: Based on below, Activity-Based Costing and Analysis Cost Behavior and Cost-Volume-Profit Analysis…

A: Under cost-profit volume analysis, the break-even point is that level of production where the…

Q: Google uses variable costing for several business decisions. How can variable costing income be…

Q: PLEASE ANSWER ALL Write “True” if the statement is true and write “False” if the statement is…

A: Variable costs are those costs that changes with change in level of activity. Fixed costs are costs…

Q: . What is the total cost (holding and ordering) of using lot-for-lot c technique? 8. What is the…

A: Step 1 EOQ, is a optimal order quantity where logistics costs, warehousing space, stock outs, and…

Q: Describe how total fixed costs and unit fixed costs behave as the level of activity increases

A: Fixed costs are those costs that remain fixed irrespective of the level of activity.

Q: Apple produces tablet computers. Identify some of the variable and fixed product costs associated…

A: Given: The associated fixed and variable cost related to production of tablet computers by apple.

Q: On a graph, if a horizontal axis represents units of production and the vertical axis represents…

A: Solution: Total variable cost is dependent on nos of units produced and same will increase in same…

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1 Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: Google has many types of costs. What is an out-of-pocket cost? What is an opportunity cost? Are…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is…

A: The total cost of production includes the variable costs, fixed costs and mixed costs.

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Google has both fixed and variable costs.
Why are fixed costs depicted as a horizontal
line on a CVP chart?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Google has many types of costs. What is an out-of-pocket cost? What is an opportunity cost? Are opportunity costs recorded in the accounting records?
Using the data in E4-2 and spreadsheet software, determine: The variable cost per unit, the total fixed cost, and R2. The plotted data points using the graphing function. Compare the results to your solutions in E4-2 and E4-3 and explain the reasons for the results.
Google uses variable costing for several business decisions. How can variable costing income be converted to absorption costing income?
Which of the following statements regarding graphs of fixed and variable costs is true? (a) Variable costs can be represented by a straight line where costs are the same for each data point.(b) Fixed costs can be represented by a straight line starting at the origin and continuing through each data point.(c) Fixed costs are zero when production is equal to zero.(d) Variable costs are zero when production is equal to zero.(e) Fixed and Variable costs are curvilinear form above zero on the “Y” axis.
Differentiate variable cost from fixed cost Can you make a table for me, thank you
On a graph, if a horizontal axis represents units of production and the vertical axis represents total costs, the total variable costs line would be shown as a(n): Question 4 options: horizontal line. vertical line. upward sloping line. downward sloping line.
Assume that a straight line on a CVP chart intersects the vertical axis at the level of fixed costs and has a positive slope that rises with each additional unit of volume by the amount of the variable costs per unit. What does this line represent?
The graph of a variable cost when plotted against its related activity base appears as a a.circle b.straight line c.rectangle d.curved line
Give me an example How Efficient are Graphic Techniques - Scatter Charts for Estimating Costs?
Are there situations where Google can use process costing? Identify at least one and explain it.
Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns can be described as fixed, variable, semi-variable, mixed, or step function (i.e., semi-fixed) in nature. Explain the exact type of cost behavior pattern represented by each of the cost curves shown in graphs A through L. Note that some of the graphs might represent a combination of multiple cost behavior patterns.
On a CVP graph, the total cost line intersects the vertical (dollars) axis at the origin. the level of fixed costs. the breakeven point. the level of the variable costs.