A student association has hired a musical group for a graduation party. The cost will be a
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1. Suppose 500 people attend the party. What will be the total cost of the musical group; the unit cost per person?
2. Suppose 2,000 people attend. What will be the total cost of the musical group; the unit cost per person?
3. For prediction of total costs, should the manager of the party use the unit cost in requirement 1; the unit cost in requirement 2? What is the major lesson of this problem?
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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