“Variable costs are always relevant, and fixed costs are always irrelevant.” Do you agree? Why?

Q: ‘Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: solution : concept : variable costs               variable costs are those costs which varies along…

Q: a. What is the IRR of cach alternative? b. What is the present value of costs of cach alternative?…

A: Capital budgeting is a technique that is used widely by companies to evaluate projects to make the…

Q: “There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient time.” Do you…

A: CVP analysis is always for short term decision making and are always directed for a specified time…

Q: In economic analysis we want to minimize the difference: (Benefits - Costs).

A: While conducting an economic analysis (cost-benefit analysis) the benefits must weigh greater than…

Q: In what sense can a variable cost be considered constant?

A: A variable cost is a constant amount per unit produced or used.Therefore the total amount of the…

Q: Fixed Costs imply that the divisibility assumption of linear models no longer holds? True or False?…

A: Divisibility Assumption: Decision variables in a linear programming model are allowed to have any…

Q: Is corrective action always necessary when actual costs are higher than standard costs

A: A company which manufactures products and goods keeps a sharp eye on its costs. When the actual cost…

Q: The advantages of standard costing exceeds its disadvantages. True or false? Explain further

A: Standard Costing The primary purpose of implementing the cost accounting system to any organisation…

Q: incremental analysis, Group of answer choices costs are not relevant if they change between…

A: In carrying out the incremental analysis only relevant costs are to be considered in the decision…

Q: If fixed costs must be incurred during a given period, shouldn't they be expense during that period?…

A: INTRODUCTION Fixed costs are the cost which doesn’t change with the changes in level of production.…

Q: What are some factors that affect variable costs?

A: Variable costs: A variable cost is a business expenditure that varies in proportion to manufacturing…

Q: Why is there a need to separate mixed cost as to variable & fixed cost?

A: Variable cost: these are the costs which vary with the units produced. These costs increase by…

Q: Help question 35

A: Relevant cost are refer as the incremental and avoidable cost for implementing the business…

Q: Sunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree?…

A: Suck Cost: a cost that has already been spent but cannot be recouped; this kind of expense is…

Q: 3. Which of the following is correct regarding a relevant range? a Total variable costs will not…

A: A Relevant Range is the Range of Activity above which the Variable Cost Per Unit and The Total Fixed…

Q: There can be no differential costs if the expenses are fixed. Is that what you're saying? Explain.

A: Variable and differential costs: What are they used for, and what do they mean: When two options…

Q: What is the economic rationale for the cost approach? Under what conditions would the cost approach…

A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…

Q: “Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of…

A: Indirect cost pool refers to the accumulated cost that jointly benefits two or more costs…

Q: "ABC systems may result in misallocation of indirect costs." Do you agree? Give reasons for your…

A: ABC system means Activity Based Costing system in which all indirect costs or overhead costs are…

Q: “Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do…

A: Sunk cost: Sunk cost is the cost that has been incurred as a result of past events and such cost…

Q: What do you mean when you say "fixed costs"? What's the point? Is it possible to have a combined…

A: Introduction: Costs are the costs that a company incurs when it is in operation. It includes the…

Q: What is meant by an activity base when dealing with variable costs? Give several examples of…

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: costs that have characteristics of both variable and fixed cost

A: We know that Fixed costs are costs that remain constant irrespective of the level of activity .…

Q: Costs maybe classified in a different type of behavioural costs such as variable and fixed costs…

A: From the cost behaviour perspective, there are two types of costs. One is fixed costs and other is…

Q: Please explain thoroughly the statement below. (True/false), how and why?  "When expressed on a…

A: POINTS TO BE NOTED -    ** Fixed cost will remain constant irrespective of change in the level of…

Q: Why can cost benefit analysis be difficult to carry out?

A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…

Q: Which of the following would not be relevant in a make or buy decision? Unavoidable variable costs…

A: Relevant cost considered for making component inhouse: Direct costs Variable overhead Avoidable…

Q: Why is fixed costs changing?

A: In the given problem some estimates related to selling price and cost to be incurred are given and…

Q: “There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient time.” Do you…

A:

Q: Label each of the following statements as either true (“T”) or false (“F”). A sunk cost will change…

A: Sunk cost: It can be defined as an expense that has already been paid for and cannot be recovered in…

Q: Fixed costs that management can decide not to incur at any time are:     always variable.…

A: Fixed Costs are the costs that does not vary with the change in output or sales. These costs remain…

Q: Why can unitized fixed costs cause errors in decision making?

A: Decision making process: Decision making process requires an understanding of a grasp of illegal…

Q: ou agree from the following statements- Explain in details with Variable costs are controllable but…

A: Statement is TRUE but not entirely True. Variable costs are controllable cost while fixed costs are…

Q: “All future costs are relevant.” Do you agree? Why?

A: Future cost: The cost that is expected to be incurred on the investment by the company in the future…

Q: Only variable costs can be differential costs. Do you agree? Explain

A: Answer

Q: “Variable costs and differential costs mean the same thing.” Do you agree? Explain

A: Differential cost:   The difference between the costs of two alternatives is considered as a…

Q: Using the high-low method, what is the fixed costs?

A: High Low Method- This method is used when Mixed costs are given which includes both Variable cost…

Q: Do you agree from the following statements- Explain in details with examples 1.Variable costs are…

A: IntroductionProduction cost may be defined as that type of expenses which occurs during the…

Q: What two arguments tend to justify classifying all costs as either fixed or variable even though…

A: Costs are the expenses which are spent by the manufacturing entity to perform its operations or…

Q: “All future costs are relevant in decision making.” Do you agree? Why?

A:

Q: Explain the behavioral problem that can result when cost-plus prices are based on variable cost.

A: Following is the answer to the given question

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.