the overall level of activity is Number of CDs sold. - In respect to changes in the measure of CDs sold‚ a variable cost is a cost that varies‚ in total‚ in direct proportion while a fixed cost remains unchanged‚ in total‚ regardless of any change. ->Examples of fixed and variable costs in respect to small changes in the measure of selling CDs: Cost | Cost behavior | | Variable | Fixed | The cost of advertising new store | | X | Number of CDs supplied | X | | The cost of renting
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where the sales force is paid salary plus commission is a _______. D. mixed cost An increase in total variable cost usually indicates ___________. B. the cost-driver activity level is increasing The following information is for Kinsner Corporation: Total fixed costs $313‚500 Variable costs per unit $99 Selling price per unit
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(1) the direct variable costs of providing the service‚ (2) the direct fixed costs‚ and (3) an appropriate share of the overhead expenses of the organization. In addition‚ one could make a strong argument that full-cost pricing should recognize that a profit component is necessary to support growth and‚ for investor-owned businesses‚ to provide a return to the suppliers of equity capital. Under marginal-cost pricing‚ prices are set to cover only the marginal (typically the variable) costs associated
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ACN203S Discussion class – 2nd semester 2012 – ACN203S Questions to be discussed will be from the first semester (TL101 2012) 8:30 – 12:00 (Classes will be presented only in English) ACN203S LECTURERS Telephone nr’s: RK Nzhinga (Mr) JM Verster (Ms) Y Reyneke (Mrs) E-mail address: ACN203S-12-S2@unisa.ac.za 012 429 6937 012 429 4767 012 429 4046 GENERAL MATTERS: EXAM FORMAT - 100 marks - 2 hours - 5 Questions (20 marks each) - Previous exams uploaded on MyUnisa. - Do not spot
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expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production? What was the actual per unit cost of production and shipping? Total budgeted costs (both variable and fixed) = 512‚800 + 26‚000 = $772‚800 Total budgeted units = 18‚000 Total expected cost per unit = 772‚800 / 18‚000 = $42.93 Total actual costs (both variable an fixed) = 432‚000 + 261‚200 = $693‚200 Total actual units
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2.52 125‚000.00 2‚000 Per month Per month Per month Product Per year Product Per year Per unit Per Invesment Per Labor Per Year Questions 1 Variable Cost per unit? Fixture cost/(Capacity*Labor hour) Worker Salary/Capacity Worker bonus/capacity Component cost Shipping and delivery Equipment/(capacity*Labor hour) variable cost per unit $ $ $ $ $ $ $ 0.03 0.45 0.09 1.53 0.09 0.02 2.21 Fixed Cost per Month? Rental Kincade Salary Office Manager Salary
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/ 1 How do managers plan for variable overhead costs? Managers plan for variable overhead changes with the level of activity‚ so if managers think they are overspending on variable overhead‚ managers are able to slow or stop the production process and investigate. If some reason a company needs to increase production‚ managers have to check and add variable overhead as needed. 1. How does the planning of fixed overhead cost differ from the planning of variable costs? Fixed overhead costs involve
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inventory will include direct materials‚ direct labour‚ and both variable and fixed manufacturing overhead. As a result‚ absorption costing is also referred to as full costing or the full absorption method. On the other hand absorption costing is often contrasted with variable costing or direct costing. Under variable or direct costing‚ the fixed manufacturing overhead costs are not allocated or assigned to the products manufactured. Variable costing is often useful for management’s decision-making.
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the company currently sells 2‚000 bottles per day. Following is a summary of the company’s income and costs on a daily basis. Sales Revenue $40‚000 Incremental Variable Costs $16‚000 Nonincremental Fixed Costs $20‚000 Note: You can assume that variable costs are constant so that the average of them is the variable cost relevant for a change in sales. One can calculate the change in sales volume necessary for the price change to be profitable by using the following Basic Breakeven
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OBJECTIVES INTRODUCTION MEANING DEFINITIONS TYPES OF COSTS MONETARY COSTS REAL COSTS OPPORTUNITY COSTS ECONOMIC COSTS ACCOUNTING COSTS INCREMENTAL COSTS SUNK COSTS FUTURE COSTS PRIVATE‚ EXTERNAL AND SOCIAL COSTS FIXED / SUPPLEMENTARY / OVERHEAD COSTS VARIABLE / PRIME COSTS REPLACEMENT COSTS PRODUCTION COSTS SELLING COSTS CONTROLLABLE COSTS DIRECT COSTS INDIRECT COSTS SHORT RUN COSTS CURVES LONG RUN COSTS CURVES OBJECTIVES To understand the meaning of cost. To discuss different types of costs. To describe
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