menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Identify activity bases From the following list of activity bases for an automobile dealership, select the ba.se that would be most appropriate for each of these costs: (1) preparation costs (cleaning, oil, and gasoline costs) for each car received, (2) salespersons commission of 5% of the sales price for each car sold, and (3) administrative costs for ordering cars. A. Number of cars sold B. Dollar amount of cars ordered C. Number of cars ordered D. Number of cars on hand E. Number of cars received F. Dollar amount of cars sold G. Dollar amount of cars received H. Dollar amount of cars on hand

BuyFindarrow_forward

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207

Solutions

Chapter
Section
BuyFindarrow_forward

Financial & Managerial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337119207
Chapter 19, Problem 19.4EX
Textbook Problem
6 views

Identify activity bases

From the following list of activity bases for an automobile dealership, select the ba.se that would be most appropriate for each of these costs: (1) preparation costs (cleaning, oil, and gasoline costs) for each car received, (2) salespersons commission of 5% of the sales price for each car sold, and (3) administrative costs for ordering cars.

A. Number of cars sold

B. Dollar amount of cars ordered

C. Number of cars ordered

D. Number of cars on hand

E. Number of cars received

F. Dollar amount of cars sold

G. Dollar amount of cars received

H. Dollar amount of cars on hand

To determine

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Activity Base: The activities that cause the cost to vary accordingly are known as activity base.

To select: the activity base that would be most appropriate for each of the given costs.

Explanation of Solution

Select the activity base that would be most appropriate for each of the given costs.

Sl.No. Cost Sl. No. Activity Base
1. Preparation costs (cleaning, oil, and gasoline costs) for each car received E. Number of cars received
2. Salespersons’ commissions of 5% of the sales price for each car sold F. Dollar amount of car sold
3. Administrative costs for ordering cars G. Number of cars ordered

Table (1)

1.

Preparation cost is incurred on each car received for making the automobile ready to operate...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 19 Solutions

Financial & Managerial Accounting
Show all chapter solutions
add
Ch. 19 - High-low method The manufacturing costs of...Ch. 19 - Contribution margin Lanning Company sells 160,000...Ch. 19 - Break-even point Bigelow Inc. sells a product for...Ch. 19 - Target profit Ramirez Company sells a product for...Ch. 19 - Sales mix and break-even analysis Hughes Company...Ch. 19 - Operating leverage Tail Co. reports the following...Ch. 19 - Margin of safety Liu Company has sales of...Ch. 19 - Classify costs Following is a list of various...Ch. 19 - Identify cost graphs The following cost graphs...Ch. 19 - Identify activity bases For a major university,...Ch. 19 - Identify activity bases From the following list of...Ch. 19 - Identify fixed and variable costs Intuit Inc....Ch. 19 - Relevant range and fixed and variable costs Vogel...Ch. 19 - High-low method Ziegler Inc. has decided to use...Ch. 19 - High-low method for a service company Boston...Ch. 19 - Contribution margin ratio A. Young Company budgets...Ch. 19 - Contribution margin and contribution margin ratio...Ch. 19 - Break-even sales and sales to realize income from...Ch. 19 - Break-even sales Anheuser-Busch InBev Companies,...Ch. 19 - Break-even sales Currently, the unit selling price...Ch. 19 - Break-even analysis The Junior League of...Ch. 19 - Break-even analysis Media outlets such as ESPN and...Ch. 19 - Break even analysis for a service company Sprint...Ch. 19 - Cost-volume-profit chart For the coming year,...Ch. 19 - Profit-volume chart Using the data for Loudermilk...Ch. 19 - Break-even chart Name the following chart, and...Ch. 19 - Break-even chart Name the following chart, and...Ch. 19 - Sales mix and break-even sales Dragon Sports Inc....Ch. 19 - Break-even sales and sales mix for a service...Ch. 19 - Margin of safety A. If Canace Company, with a...Ch. 19 - Break-even and margin of safety relationships At a...Ch. 19 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 19 - Classify costs Seymour Clothing Co. manufactures a...Ch. 19 - Break-even sales under present and proposed...Ch. 19 - Break-even sales and cost-volume-profit chart For...Ch. 19 - Break-even sales and cost-volume-profit chart Last...Ch. 19 - Sales mix and break even sales Data related to the...Ch. 19 - Contribution margin, break even sales,...Ch. 19 - Classify costs Cromwell Furniture Company...Ch. 19 - Break-even sales under present and proposed...Ch. 19 - Break even sales and cost-volume-profit chart For...Ch. 19 - Break-even sales and cost-volume-profit chart Last...Ch. 19 - Sales mix and break even sales Data related to the...Ch. 19 - Contribution margin, break-even sales,...Ch. 19 - Break-even number of passengers for a cruise Ocean...Ch. 19 - Break-even subscribers for a video service Star...Ch. 19 - Break-even number of guests for a theme park...Ch. 19 - Ethics in Action Edward Seymour is a financial...Ch. 19 - Communication Sun Airlines is a commercial airline...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
Explain how absolute advantage and comparative advantage differ.

Principles of Economics (MindTap Course List)

Why is productivity important?

Principles of Microeconomics (MindTap Course List)

What is driver analysis? What role does it play in process-value analysis?

Managerial Accounting: The Cornerstone of Business Decision-Making

How do accounting concepts, principles, standards, and rules differ?

Intermediate Accounting: Reporting And Analysis

Discuss target market strategies

MKTG 12:STUDENT ED.-TEXT

Is the debt level that maximizes a firm's expected EPS the same as the debt level that maximizes its stock pric...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)