FUND. ACCOUNTING PRINCIPLES >CUSTOM<
24th Edition
ISBN: 9781307417692
Author: Wild
Publisher: MCG/CREATE
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Textbook Question
Chapter 21, Problem 1QS
Cost behavior identification
C1
Listed here are four series of separate costs measured at various volume levels. Examine each series and identify whether it is best described as a fixed, variable, step-wise, or curvilinear cost. (It can help to graph each cost series.)
Volume (Units) | Series 1 | Series 2 | Series 3 | Series 4 |
0 | 1 0 | 1150 | $ 900 | $100 |
100 | ... 800 1.500 | 150 150 | 800 8OO | 105 |
200 | 120 | |||
300 | . 2,400 | 150 | 1,600 | 145 |
100.. | 3,200 | 150 | 1.500 | 190 |
500 | 4.000 | 150 | 2.400 | 250 |
600 | 4.800 | 150 | 2.400 | 320 |
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1. Listed here are four series of separate costs measured at various volume levels.
Volume (Units)
Series 1
Series 2
Series 3
Series 4
0
$450
$800
$100
0
100
450
800
105
800
200
450
800
120
1,600
300
450
1,600
145
2,400
400
450
1,600
190
3,200
500
450
2,400
250
4,000
600
450
2,400
320
4,800
Examine each series and identify whether it is best described as a fixed, variable, step-wise, or curvilinear cost. It can help to graph the cost series.
Series 1
Series 2
Series 3
Series 4
E6-2A
High-Low Method
Apply the high-low method of cost analysis to the three cost data groups in E6-1A. What cost behavior are apparent? Express each as a cost formula.
Volume (applicable to each group)
Group A Costs
Group B Costs
Group C Costs
2,000
$2,600
$1,000
$2,400
12,000
12,600
6,000
2,400
16,000
16,600
8,000
2,400
20,000
20,600
10,000
2,400
QUESTION FOUR
By use of an example demonstrate how relevant costs are used in short term decision making.
Describe Activity Based Costing (ABC) method and how it is used to determine the cost of a product or service.
Consider the following information:
Contribution to Sales (C/S) Ratio = 25%
Selling Price per unit = K70
Total Fixed Costs = K140,000
Required:
Calculate
Contribution per Unit
Variable cost per Unit
Break Even Point in Quantity and Sales value terms
Chapter 21 Solutions
FUND. ACCOUNTING PRINCIPLES >CUSTOM<
Ch. 21 - Prob. 1DQCh. 21 - Prob. 2DQCh. 21 - Prob. 3DQCh. 21 - Prob. 4DQCh. 21 - Prob. 5DQCh. 21 - Prob. 6DQCh. 21 - Prob. 7DQCh. 21 - Prob. 8DQCh. 21 - Prob. 9DQCh. 21 - Prob. 10DQ
Ch. 21 - Prob. 11DQCh. 21 - List three methods to measure cost behavior.Ch. 21 - Prob. 13DQCh. 21 - Prob. 14DQCh. 21 - Prob. 15DQCh. 21 - Prob. 16DQCh. 21 - Prob. 17DQCh. 21 - Prob. 18DQCh. 21 - Prob. 19DQCh. 21 - Prob. 20DQCh. 21 - Prob. 21DQCh. 21 - Prob. 22DQCh. 21 - Cost behavior identification C1 Listed here are...Ch. 21 - QS 21-2
Cost behavior identification
c1 ...Ch. 21 - QS 21-3 Cost behavior estimation—high-low method...Ch. 21 - Prob. 4QSCh. 21 - Prob. 5QSCh. 21 - Prob. 6QSCh. 21 - Prob. 7QSCh. 21 - Prob. 8QSCh. 21 - Prob. 9QSCh. 21 - Prob. 10QSCh. 21 - Prob. 11QSCh. 21 - Prob. 12QSCh. 21 - Prob. 13QSCh. 21 - Prob. 14QSCh. 21 - Prob. 15QSCh. 21 - Prob. 16QSCh. 21 - Prob. 17QSCh. 21 - Prob. 18QSCh. 21 - Prob. 19QSCh. 21 - Prob. 20QSCh. 21 - Prob. 21QSCh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Prob. 3ECh. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Prob. 9ECh. 21 - Prob. 10ECh. 21 - Prob. 11ECh. 21 - Prob. 12ECh. 21 - Prob. 13ECh. 21 - Prob. 14ECh. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Prob. 17ECh. 21 - Prob. 18ECh. 21 - Prob. 19ECh. 21 - Prob. 20ECh. 21 - Prob. 21ECh. 21 - Prob. 22ECh. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Prob. 25ECh. 21 - Prob. 26ECh. 21 - Prob. 27ECh. 21 - Prob. 1APSACh. 21 - Prob. 2APSACh. 21 - Prob. 3APSACh. 21 - Prob. 4APSACh. 21 - Prob. 5APSACh. 21 - Prob. 6APSACh. 21 - Prob. 7APSACh. 21 - Prob. 1BPSBCh. 21 - Prob. 2BPSBCh. 21 - Prob. 3BPSBCh. 21 - Prob. 4BPSBCh. 21 - Prob. 5BPSBCh. 21 - Prob. 6BPSBCh. 21 - Prob. 7BPSBCh. 21 - Prob. 21SPCh. 21 - Prob. 2AACh. 21 - Prob. 3AACh. 21 - Labor costs of an auto repair mechanic are seldom...Ch. 21 - Prob. 2BTNCh. 21 - Prob. 4BTNCh. 21 - Prob. 6BTN
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