Answered: In the cost behavior equation, b*X…

Business

Accounting

In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 17MC: In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs...

See similar textbooks

Related questions

Q: Part of your company's accounting database was destroyed when Godzilla attacked the city. You have…

A: The variance is calculated as difference between actual data and standard production data of the…

Q: ovide example of accounting treatment for transactions related to loan in two situations as…

A: Loan : It is the amount which is borrowed by the individual to fulfil his/her needs. When amount…

Q: per -Variable cost per unit: $7 Fixed costs: $1,500 iven these data, compute the BREAKEVEN numb O150…

A: Break even point: It is the point where the total revenues and total expenses are equal, units in…

Q: Throughout this course we have discussed market entry strategies, i) trading entry strategies, and…

A: Market entry is the strategy made by traders and investors to enter the market to earn profits and…

Q: Neko Case decides to open a cleaning and laundry service near the local college campus that will…

A: Since the question posted is multi-part question. As specified to solve only part (8) and (9),…

Q: Liabilities of P300,000 were settled in full for P224,000. The P76,000 difference would be reported…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: ACTIVITY 5: LET'S PUT IT ALL TOGETHER! Now you're ready to accomplish the JOURNAL, LEDGER and TRIAL…

A: Journal is the recording of financial transactions according to dual entity concept. They are…

Q: Net sales Cost of goods sold Beginning inventory $ 180,000 124,000 41,000

A: Introduction: Gross profit ratio: It tells the level of gross profit % earned on the Total sales of…

Q: Required information [The following information applies to the questions displayed below.] Ron and…

A: tax is an amount that is charged by the government from the individuals and the organizations on the…

Q: What factors Influence the spending behavior of the different sectors of the economy? How do…

A: The following are some factors influencing how individuals in various economic sectors will spend…

Q: Problem 1 Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its…

A: Answer:- Here the NPV is positive and higher, Bird's Eye Treehouses, Inc., should be adopted the…

Q: Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales…

A: Cash Receipt Budget :— This Budget Shows the collection of Expected cash receipt on budgeted sales.…

Q: Could you answer the question through this journal I'm confused on where to input the information

A: Cash Receipt Journal Cash Receipt Journal which are deal with the cash received transaction which…

Q: A product has three level value chain. The Product was sold at ₱16, ₱60, ₱124 in each level…

A: The VAT rate as applicable is 12% on the gross sales. Hence, in the above question, VAT will be…

Q: how can I get the No. of shares is 1.23?

A: Given that, Present value of gain = $29,443,271.72 Takeover premium in amount = $14,721,635 Share…

Q: The amount of uncollectible accounts at the end of the year is estimated to be $28,500, using the…

A: Introduction: A provision for doubtful accounts is referred to as a "contra asset" because it lowers…

Q: PR 4-4A Ledger accou and closing entries; optional spreadsheet The unadjusted trial balance of…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Complete your calculations by filling in the highlighted cells. Discuss the results and comment on…

A: Lets understand the basics. When calculation is needed for whether special order should be taken or…

Q: The project NPV is 14.95. The initial investment 15m. The discount rate is 4.5% per annum. What is…

A: The payback period is one of the capital budgeting techniques which is only used to estimate the…

Q: If the company sells 4,900 units, its total contribution margin should be closest to: (Do not round…

A: Introduction:- Contribution margin is the difference between sales revenue less its variable costs.…

Q: MAKE AN INTERPRETATION AND ANALYSIS FOR THIS TABLE BELOW. I WILL UPVOTE. THANK YOU Formula 2020…

A: Lets understand the basics. Financial ratios are calcualted to compare the various years or various…

Q: Problem 5-4A Adjusting entries and multi-step income statement-perpetual LO5 Use the unadjusted…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Lukaku's Bakery is a local bakery that operates in Kuwait. Their controller is trying to determine…

A: A.1. Using High-low method, Variable Cost per unit = Highest Activity Cost-Lowest Activity…

Q: Cable Company reviewed its year-end inventory and found the following items: A. A package containing…

A: Inventories are defined as Asset as per PAS 2 as :- Paragraph 6 - held for sale in the ordinary…

Q: uctions Name Dust Devil, Inc. Gale Co. Whirlwind Co. Total Number of Shares Dust Devil, Inc. Gale…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: 2. The Parks and Recreation Department of Pawnee is trying to decide on the number of fireworks…

A: Subsidy a sum of money granted by the state or a public body to help an industry or business keep…

Q: Calculate the material variances. Calculate the labor variances. Complete your calculations by…

A: A variance is a difference between actual measured output and a basis, such as a budgeted amount.…

Q: HH, II and JJ were partners with capital balances as of January 1, 20x7, of P100,000, P150,000 and…

A: A partnership is a kind of business structure in which two or more people agree to carry out…

Q: Morley Manufacturing has notes receivable that have a fair value of P810,000 and a carrying amount…

A: Note receivable is the amount that is due to be received by the company on the note issued. It is an…

Q: D (c) (d) D Exchange of land for patent. Sale of building at book value. Payment of dividends.…

A: A cash flow statement is prepared to show the three cash flow activities that are operating…

Q: On May 1, 10,000 shares of $10 par common stock were issued at $30, and on May 7, 5,000 shares of…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: Instructions Complete this problem as shown. For Question 1, your answer options should be $141,800,…

A: Financial statement means the statement which include the income statement and the balance sheet.…

Q: MAKE AN INTERPRETATION AND ANALYSIS FOR THIS TABLE BELOW. I WILL UPVOTE. THANK YOU Average…

A: Average collection period is time required to recover the payment from the customer which is…

Q: Vincent Corporation has 91,000 shares of $105 par common stock outstanding. On June 30, Vincent…

A: Introduction: A journal entry is a record of a business arrangement in the accounting system of a…

Q: On January 1, Vermont Corporation had 46,700 shares of $10 par value common stock issued and…

A: A journal entry is used to record a business arrangement in a company's accounting records. A…

Q: The following financial information is from Bronco Company. All debt is due within one year unless…

A: Current liabilities are the short-term obligations. These are to be repaid by the entity within the…

Q: Fixed assets and current assets

Q: 2

A: Allowance for doubtful accounts - Allowances is the provision made by the company to uncollectible…

Q: Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $720,000. The…

A: The non-value-added cost is calculated by deducting the efficiency rate from the actual rate and…

Q: e. What adjusted tax basis does Wizard Corporation take in the land and building received from…

A: Land Building Adjusted tax basis $115,000 $35,000

Q: ank provide an investment as Rabbul Maal with restriction to mudarib that he invest oil sector,…

A: A partnership is a form of business in which two or more people agree to operate and manage the…

Q: If the company sells 4,900 units, its total contribution margin should be closest to: (Do not round…

A: Contribution margin is that portion of sales, which comes after subtracting total variable cost from…

Q: Required: 1. Prepare journal entries to record the costs incurred in both the Bending Department and…

A: Journal Entry The purpose of preparing the journal entry to enter the required transaction which are…

Q: On January 1, 2020, Parent Company acquired 80% of the common stock of Subsidiary Company for…

A: A fair value allocation and goodwill schedule is a schedule that presents the calculation of the…

Q: Segment data for Felicia’s Fast Food Restaurants for the current year appears below: Cajun…

A: In order to calculate the net effect on net profit from closure of a business segment we need to…

Q: Finley Company End-of-Period Spreadsheet For the Year Ended December 31 Adjusted Trial Balance…

A: Retained earnings is the amount of money that the entity has retained from the profits of the entity…

Q: Woxy company is considering its forthcoming projections for cash budget purposes. Woxy's forecasts…

A: Given data: Cash sales are 10% of total sales Credit sales are collected 50% in the month of sales…

Q: What is the ICER?

A: ICER is called Incremental Cost-Effectiveness Ratio. The formula for calculating ICER is: ICER =…

Q: Description Printer Date Bought Jan. 1, 20x1 Estimated Useful Life YEAR 20X1 20X2 20X3 20X4 20X5…

A: Depreciation(SLM)=Original cost-Salvage valueUseful life=$4,100-$5006 years=$600

Q: A firm absorbs overheads on labour hours. In one period 11,500 hours were worked, actual over heads…

A: The overhead absorption rate is also called the Predetermined overhead rate . These rates are…

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

In the cost behavior equation, b*X denotes the variable cost per unit.
Select one:
O True
O False

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Explanation

VIEW

Step 3: Final Answer

VIEW

Step by step

Solved in 3 steps

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

Which of the following graphs illustrates how unit variable costs behave with changes in total units produced?
Describe how total variable costs and unit variable costs behave with changes in the level of activity
How does the length of the time horizon affect the classification of a cost as fixed or variable? What is the meaning of short run? Long run?
Describe how total variable costs and unit variable costs behave with changes in the level of activity.
A scatter graph is used to test the assumption that the relationship between cost and activity level is __________________________. A. curvilinear B. cyclical C. unpredictable D. linear
What is the basic premise underlying the high-low method of analyzing semivariable costs?
Which of the following graphs best illustrates fixed costs per unit as the activity base changes?
Explain the differences among fixed costs, variable costs, and mixed costs.
Which of the following methods of cost estimation relies on only two data points? A. the high-low method B. account analysis C. least-squares regression D. SWOT analysis.
In the mixed cost function Y = A + BX, total variable costs is represented by: a. A + BX b. A c. Y d. BX
In describing the cost formula equation, Y = a + bX, which of the following is correct?a. “Y” is the independent variableb. “a” is the variable cost per unitc. “a” and “b” are valid for all levels of activityd. in the high-low method, “b” equals the change in cost divided by the change in activity.
In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple Choice O O O "Y" is the independent variable. "a" is the variable cost per unit. "a" and "b" are valid for all levels of activity. in the high-low method, "b" equals the change in cost divided by the change in activity.