EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 17, Problem 15PS
Summary Introduction
To think critically about:
The reason for which the change in the labor per unit of output index is considered useful as a lagging indicator
Introduction:
Lagging indicators are those types of indicators which change only when the economy began to follow a particular type of trend either it can be positive or negative. When there is expansion in the business in terms of production, labor cost per unit reduced.
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Which of the following describes the behavior of the fixed cost per unit?
Decreases with decreasing production
Decreases with increasing production
Increases with increasing production
Remains constant with changes in production
Which of the following describes the behavior of the fixed cost per unit?
Group of answer choices
remains constant with changes in production
decreases with increasing production
increases with increasing production
decreases with decreasing production
Which of the following describes the behavior of the fixed cost per unit?
a.remains constant with changes in production
b.decreases with decreasing production
c.decreases with increasing production
d.increases with increasing production
Chapter 17 Solutions
EBK INVESTMENTS
Ch. 17 - Prob. 1PSCh. 17 - Prob. 2PSCh. 17 - Prob. 3PSCh. 17 - Prob. 4PSCh. 17 - Prob. 5PSCh. 17 - Prob. 6PSCh. 17 - Prob. 7PSCh. 17 - Prob. 8PSCh. 17 - Prob. 9PSCh. 17 - Prob. 10PS
Ch. 17 - Prob. 11PSCh. 17 - Prob. 12PSCh. 17 - Prob. 13PSCh. 17 - Prob. 14PSCh. 17 - Prob. 15PSCh. 17 - Prob. 16PSCh. 17 - Prob. 17PSCh. 17 - Prob. 18PSCh. 17 - Prob. 19PSCh. 17 - Prob. 20PSCh. 17 - Prob. 21PSCh. 17 - Prob. 22PSCh. 17 - Prob. 23PSCh. 17 - Prob. 24PSCh. 17 - Prob. 25PSCh. 17 - Prob. 26PSCh. 17 - Prob. 27PSCh. 17 - Prob. 1CPCh. 17 - Prob. 2CPCh. 17 - Prob. 3CPCh. 17 - Prob. 4CPCh. 17 - Prob. 5CPCh. 17 - Prob. 6CPCh. 17 - Prob. 7CP
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- Is this statement true or false? Can you please explain in detail. There is a difference between the theoretical production capacity and the actual output as demand fluctuates, resulting in differences in standardised cost price per unitarrow_forwardAs compared with the FIFO method of costing inventories,does the LIFO method result in a larger or smallernet income in a period of rising prices? What is the comparativeeffect on net income in a period of falling prices?arrow_forwardWhat does it mean to use the DuPont model to help explain a decrease in ROI?arrow_forward
- Which of the following would lead to the breakeven point of a product shifting to the left on a traditional breakeven chart? A An increase in the selling price per unit B An increase in the variable costs of each unit C An increase in the level of fixed costs D A decrease in the selling price per unitarrow_forwardthe link between short-run average costs and long-run average costs? Explain the association between return to scale and economies of scale and suggest the potential sources of internal and external economies of scale. Why might firms face diseconomies of scale and shutdown/break-even situations in the long run?arrow_forwardWhat does it mean when ROI has decreased even though net income hasincreased?arrow_forward
- Which of the following is true about the changes in fixed cost? An increase in production will result in an increase in per unit fixed cost. A decrease in fixed cost will result in an increase in variable cost. An increase in production will result in a decrease in per unit fixed cost. A decrease in production will result in an increase in total fixed cost.arrow_forwardWhich of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.arrow_forwardWhich of the following describes the behavior of total variable and total fixed costs when level of production increases?arrow_forward
- Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.They will decrease as production decreases. B.They will increase as production increases. C.They will increase as production decreases. D.They will remain the same as production levels change.arrow_forwardWould each of the following increase, decrease, or have an indeterminant effect on a firms break-even point (unit sales)? a. The sales price increases with no change in unit costs. b. An increase in fixed costs is accompanied by a decrease in variable costs. c. Variable labor costs decline; other things are held constant.arrow_forwardwhy does fixed costs remain the same in total dollar amount but increases per unit as the level of activity changesarrow_forward
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