In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost estimated?

Q: With reference to Bryony’s Pasta, distinguishbetween fixed costs and variable costs.

A: The total cost can be divided into two categories. Fixed cost:  cost indicates the fixed and does…

Q: When pricing products and using cost-plus pricing, which type of cost is perceived to be the safest…

A: In absorption costing , fixed manufacturing overhead will be included in stock valuation where as in…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: Distinguish between escapable and inescapable costs. Give an example of each.

A:

Q: Given the following, the only item that will generally be included in relevant cost analysis is:…

A: Introduction:   The phrase "relevant cost" in managerial accounting refers to avoidable costs that…

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: Explain the difference between the variable and absorption costing methods.

A: Under Variable Costing method, only variable costs are considered which includes only variable cost…

Q: The amount of increase or decrease in cost that is expected from a particular course of action as…

A: Discretionary cost: A discretionary expense is a cost that a business or household can survive…

Q: What are the factors that affect the breakeven point under (a) variable costing and (b) absorption…

A: Breakeven Point:The level of production that is required to cover the fixed costs and variable costs…

Q: If the units produced exceed unit sales, which method would you expect to show the higher…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Fixed, variable, and semi-variable costs all have a distinct relationship.

A: Introduction: To put it simply, a cost is a measure of how much money is spent to produce a product…

Q: When units produced exceed units sold, how does operating income differ between variable costing and…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: The “line of best fit” may also be described as: a.the total variable cost line b.the total fixed…

A: Variable cost- A variable cost is a commercial expense that changes in amount to how much a…

Q: Using the high-low method, determine the cost function for each cost?

A: High low method of cost estimation says that costs at highest level and lowest level are to be taken…

Q: a) Estimate the fixed cost and variable cost using the high-low method.

A: As per our protocol we provide solution to the one question only but as you have asked two different…

Q: Explain average cost method.

A: Average cost method: Under average cost method inventories are priced at the average of all…

Q: Why is it necessary to distinguish between variable and fixed costs when dealing with mixed costs

A: Introduction:- Every Business expenses are classified as either fixed or variable costs. on other…

Q: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

Q: Types of Fixed and Variable cost with the help of example and graph?

A: Costs are the total spent amount for the expenditures and for producing the goods and services.…

Q: a. What problems are associated with using the average cost per unit as a performance measure? b.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: When using the visual-fit method to estimate a cost function, we can estimate the fixed cost by O…

A: Visual Fit Method  It is the most common method used by analysts for examining the cost by the way…

Q: A changes in direct proportion to changes in the cost-driver level * mixed costs O fixed costs O…

A: If the change in cost and change cost driver level is of direct proportion, it is not fixed cost or…

Q: In applying the high-low method, what is the unit variable cost?

A: Formula: Variable cost per unit= Total cost of high actvity- Total cost of low actvityHighest…

Q: Marginal Costing refers to product costing methods that exclude ________ from product costs a)…

A: Using marginal costing, only variable costs are included in product cost.

Q: A technique used to split mixed costs into fixed and variable costs is called Select one: a. High…

A: The correct option is  b. Behavior analysis method

Q: The reason for some costs to be mixed in nature is: Presence of sunk cost in the cost structure.…

A: Mixed Cost:- This cost is a combination of the fixed cost and variable cost. It means that one…

Q: Why might it be misleading to show the fixed costs on a per unit basis?

A: Fixed Costs are those costs that do not change in aggregate in relation to the level of production…

Q: Compare actual and normal costing. What is the benefit of each? What is a circumstance in which each…

A: Actual Costing: Actual costing is a cost bookkeeping framework that utilizes genuine cost,…

Q: Explain how the high-low method determines:a. The variable portion of a semivariable cost.b. The…

A: This method is used to segregate variable cost and fixed cost. In this method, highest level of…

Q: What are the advantages and disadvantages of ABC relative to the step-down method of cost…

A: ABC means Activity Based Costing. Costs will be allocated based on the activities the organization…

Q: What is the relationship among fixed costs, contribution margin, and thebreak-even point?

A: Fixed costs: These are the costs incurred by the organization irrespective of the volume of…

Q: The cost that is used for the benefit of many cost objects and cannot be easily related to any…

A: Answer is as follows

Q: What is a fixed cost? A variable cost? A mixed cost? Give an example of each

A: Costs are the expenses incurred in business. It means costs incurred for the manufacturing of…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?…

A: FIFO method is First in First out method in which inventory which is purchased first will be sold…

Q: simple cost analysis method to identify fixed costs and variable costs in a linear cost function is…

A: High low method is method which separates the elements of fixed cost and variable cost from the…

Q: The product costs per unit under variable costing would be:

A: Variable costs are those costs that change with the change in the number of products manufactured by…

Q: Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether…

A: Hypothesis testing refers to the form of inferable statistics which allows us in making conclusions…

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: If the units produced and unit sales are equal, which method would you expect to show the highernet…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: Give the general formula for a mixed cost.  What does each term represent?

A: Given: The general formula for the mixed cost is given.

Q: A cost that has characteristics of both a varlable cost and a fixed cost is called a Oa,…

A: Reason:- Mixed cost refers to the cost which is a combination or mix of both fixed cost and variable…

Q: Differences in operating income between variable costing and absorption costing are due solely to…

A: Absorption costing: It refers to the method of product costing in which the price of the product is…

Q: what is the definition of fixed, variable, and mixed costs? Are variable costs or fixed costs easier…

A: Introduction: Cost accounting is a type of managerial accounting that capture a firm's production…