What is a static budget? A static budget is a budget that does not change as volume changes. If a company’s annual master budget is a static budget‚ the budget for sales commissions expense will be one amount such as $200‚000 for the year. In other words‚ in a static budget the budgeted amount for sales commissions expense will remain at $200‚000 even if the actual sales during the year are $3 million‚ $4 million or $5 million. In contrast to a company’s static master budget‚ the company’s sales
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company’s factory building would be classified as a(n) Student Answer: sunk cost. opportunity cost. period cost. variable cost. manufacturing cost. Instructor Explanation: Chapter 2 Points Received: 6 of 6 Comments: 4. Question : (TCO A) Within the relevant range‚ variable costs can be expected to Student Answer: vary in total in direct proportion to changes in the activity level. remain constant
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Description / Instructions: Complete the Week 1 WileyPLUS Practice Quiz. Multiple Choice Question 41 The proprietorship form of business organization generally receives favorable tax treatment relative to a corporation. combines the records of the business with the personal records of the owner. is classified as a separate legal entity. must have at least two owners in most states. Multiple Choice Question 45
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Problem As the financial consultants of Catawba Industrial Company our aim is to determine the best course of action to pursue with respect to the introduction of the new proposed light weight compressor. This course of action must remain within the production capacity restrictions the company faces. Alternatives Status Quo: The company will continue to produce the standard compressor to satisfy the requirements for the automatic paint system and the demand that currently exists for this
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Competition Bikes Finical Analysis Dan Petersen WGU – JET2 Finical Analysis Task 4 A. 1. To: Vice President This report has been prepared to argue the case that the company’s current costing method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with
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relevant to present decisions. Question 6 1.5 out of 1.5 points In a period when anticipated production is 10‚000 units‚ budgeted variable costs are $85‚000 and budgeted fixed costs are $45‚000. If 12‚000 units are actually produced‚ what is the expected total cost? Selected Answer: $147‚000 Correct Answer: $147‚000 Question 7 1.5 out of 1.5 points Variable cost per unit Selected Answer: does not change when the number of units produced increases. Correct Answer: does not change
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which it is incurred. 1-4 a. Variable cost: The variable cost per unit is constant‚ but total variable cost changes in direct proportion to changes in volume. b. Fixed cost: The total fixed cost is constant within the relevant range. The average fixed cost per unit varies inversely with changes in volume. c. Mixed cost: A mixed cost contains both variable and fixed cost elements. 1-5 a. Unit fixed costs decrease as volume increases. b. Unit variable costs remain
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to have a sound knowledge of cost behaviour ie fixed costs‚ variable costs‚ semi-variable costs and sunk costs. Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production‚ sales‚ inventory pile up etc. It provides good assistance in planning‚ cost management and decision making. A number of behaviour patterns exist ranging from fixed to variable and from linear to curvilinear. Many cost predictions techniques
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------------------------------------------------- 1. What is the dependent variable for this experiment? ------------------------------------------------- The dependent variable is the concentration (solute) of the potato. ------------------------------------------------- ------------------------------------------------- 2. What is the independent variable for this experiment? ------------------------------------------------- The independent variable is the concentration (solute) in which the potatoes are
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1) Variable expenses in relation to Revenue Hours are Power‚ Wages of Hourly Personnel‚ Corporate services‚ and Sales Promotions. Variable Expenses | January | February | March | Power | $1546 | $1485 | $1697 | Hourly Personnel | $7896 | $7584 | $8664 | Corporate Services | $15‚424 | $15‚359 | $15‚236 | Sales Promotions | $7‚909 | $7‚039 | $8‚083 | TOTAL VC | $32‚775 | $31‚467 | $33‚680 | FixedExpenses | January | February | March | Space Costs | $9‚240 | $9‚240 | $9‚240
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