d. sales commissions e. hourly wages Answer: b Rationale: Fixed costs are the firm’s expenses that are stable and do not change with the quantity of product that is produced and sold. The building rental expense is stable regardless of how much the firm produces and sells. VARIABLE COST DEFINITION Variable cost is the: a. total expense incurred by a firm in producing and marketing a product or
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Break even analysis is an important part in production management and decision making. In this assignment‚ the key elements of the break-even analysis will be discussed. The key elements of break-even analysis are fixed cost‚ variable cost‚ total revenue‚ break-even point and margin of safety. Although break-even analysis is very useful‚ it has disadvantages. Break-even analysis is based on the production cost of the company which includes the fixed cost and variable cost. Then the total cost of
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Martin Luther was a short‚ fat‚ white‚ German monk who was born on November 10th‚ 1983. The time period which his challenges took place was the early 1500’s AD. Martin Luther was a hero for standing up to the Catholic Church and making a new option for the Christians. The Catholic Church played a huge role in the lives of its followers. Faithful Catholics were expected to give 10% of their income to the Church‚ pay tithes (taxes)‚ obey the laws‚ and not question the authority of Church officials
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Break-even point is that point at which there is neither profit nor loss. It is at point costs are equal to sales. It is otherwise called as balancing point‚ neutral point‚ equilibrium point‚ loss ending point‚ profit beginning point etc. After BEP is achieved‚ all the further sales will contribute to profit. At BEP‚ Sales – Variable cost = Fixed costs. OR Contribution = Fixed costs. Break-even analysis Break-even analysis is an analytical technique that is used to determine the probable
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With the help of this approach they can select such assets whose value is expected to increase with time by calculating the intrinsic value of an asset using data such as revenue‚ expenses etc. Miller was a fundamental analyst as he invested in securities by looking at the economic perspective of those securities that made him always a successful fund manager. Q4) Explain how miller was able to outperform the S & P 500 for so many years? What strategies he adopted. Miller was able to outperform the
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Article 3 – How Industries Change MGT 550 Organizational Design and Change Management Assignment: Prepare a brief summary of the main concepts addressed in the article. Also prepare a question outline that would facilitate your leading the class discussion. Article Summary In the article “How Industries Change” Anita McGahan states that companies need to understand how the industry is changing in order to understand which way an organization should change. In order for a firm to gain
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Stripes Will Survive‚” the author‚ Jacqueline Adams‚ provides information about the Cleveland Metropark Zoo’s Siberian tigers and tigresses. The Siberian tigers are an endangered species‚ and some are kept‚ cared‚ and bred at that zoo. As stated in the previous paragraph‚ all zoos protect animals‚ but in different ways. For animals that are endangered‚ zoos usually
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Break-Even Analysis FIN/200 July 29‚ 2010 Justin Henegar 13. Healthy Foods‚ Inc.‚ sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80‚000‚ while the variable costs of the grapes are $.10 per pound. a. What is the break-even point in bags? 80‚000/5= 16‚000 bags- This is the company’s break-even point because the variable per unit would be $5.00 if it’s .10 per pound with a 50-lb bag. The other answer I received was 8‚080 bags but this would
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Break Even Analysis University of Phoenix Accounting in Healthcare ACC561 November 26‚ 2010 Break Even Analysis Relevance of DRG Analysis as a Tool in Healthcare DRG analysis helps managers in health care determine levels of service at which to operate and to break even as well as avoid any loses. Using the DGR analysis‚ management will be able to determine the appropriate levels at which to operate making the most of any profits (Steven‚ & David‚ 2000). The management team of
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BREAK EVEN ANALYSIS Introduction Break-even analysis is a technique widely used by production management and management accountants. It is based on categorising production costs between those which are "variable" (costs that change when the production output changes) and those that are "fixed" (costs not directly related to the volume of production). Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume‚ sales value or production at which
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