Fixed and Variable Costs in Manufacturing: Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced. Examples are costs of direct material and direct labor. Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced. Examples are costs of factory rent, depreciation on plant and equipment Manufacturing costs are costs that are directly incurred in connection with manufacture of goods. Examples are Direct materials and Manufacturing Overhead Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs. Examples are cost of blueprints of a project that is to be scrapped Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative. Examples are Assured Interest foregone on an investments in order to finance another investment alternative. Whether costs are: Fixed or variable and, Manufacturing cost or not Product cost or period cost Sunk Cost or Opportunity Cost

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Answer 1

Question

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

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Answer 2

Question

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

Expert Solution & Answer

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Answer 3

Question

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

Expert Solution & Answer

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Answer 4

Question

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

Expert Solution & Answer

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Answer 5

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

Answer 6

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

Answer 7

Chapter 1, Problem 14E

To determine

Fixed and Variable Costs in Manufacturing:

Variable costs refer to the costs of manufacture that have a direct co-relation with the volume of the goods manufactured, i.e. the costs increase with an increase in the goods produced.

Examples are costs of direct material and direct labor.

Fixed costs refer to the costs of manufacture that have an inverse co-relation with the volume of the goods manufactured, i.e. the costs decrease with an increase in the goods produced.

Examples are costs of factory rent, depreciation on plant and equipment

Manufacturing costs are costs that are directly incurred in connection with manufacture of goods.

Examples are Direct materials and Manufacturing Overhead

Sunk Costs are historical costs. These costs have been incurred and are excluded from cost calculations as the probability of future benefits does not have any impact on historical costs.

Examples are cost of blueprints of a project that is to be scrapped

Opportunity cost is the cost of the opportunity foregone in order to choose the current cost alternative.

Examples are Assured Interest foregone on an investments in order to finance another investment alternative.

Whether costs are:

Fixed or variable and,

Manufacturing cost or not

Product cost or period cost

Sunk Cost or Opportunity Cost

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1.A - EXERCISE 1A1 Cost of Quality Terms LO17, LO18 A...Ch. 1.A - EXERCISE 1A2 Classification of Quality Costs LO17...Ch. 1.A - Prob. 3P Ch. 1.A - PROBLEM 1A4 Quality Cost Report LO17, LO18 page 66...Ch. 1 - Prob. 1Q Ch. 1 - Define the following: (a) direct materials, (b)...Ch. 1 - Explain the difference between a product cost and...Ch. 1 - Distinguish between (a) a variable cost, (b) a...Ch. 1 - Prob. 5Q Ch. 1 - Define the following terms: (a) cost behavior and...

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