How does the length of the time horizon affect the classification of a cost as fixed or

Question:

How does the length of the time horizon affect the classification of a cost as fixed or variable? What is the meaning of short run? Long run?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Management Accounting And Control

ISBN: 101

6th Edition

Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan

See More Books

Question Posted: Mar 29, 2012 03:25 AM

See More Questions

How does the length of the investment horizon affect the annualized ATROR of an investment conforming to the Deferred Model?
1. Classify each cost as fixed or variable (see below) 2. Calculate the annual cost for cost description (see below) Using the cost and sales data below, prepare Income Statements (to the 3. right)...
How does the length of time that the pension contribution will remain in the pension account affect whether pension is preferred to salary? Under what conditions is the duration of the pension...
There are three general methods of allocating overhead costs: plantwide rates, rates for each expense category, and departmental rates. Describe when each is the most useful.
Ron sold his sailboat for a $5,000 loss in the current year because he was diagnosed with skin cancer. His spouse wants him to sell his Harley Davidson motorcycle because her brother broke his leg...
In an instant coffee plant, 10000 kg/hr of coffee extract containing 20% solids is concentrated using a vacuum evaporator which is designed to produce a concentrated extract with 50% solids suitable...
What are the features of direct, non-direct, and eclectic approaches to inter- OO aS viewing?
Simmons Manufacturing Company makes various electronic products. The company is divided into a number of autonomous divisions that can either sell to internal units or sell externally. All divisions...
The Struter Partnership has total partners' equity of $580,000, which is made up of Main, Capital, $406,000, and Frist, Capital, $174,000. The partners share net income and loss in a ratio of 73% to...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Divide the class into groups of six. Within each group, form pairs. One pair works Requirement 1(a); another pair works Requirement 1(b); and the remaining pair works Requirement 1(c). When the pairs...
Explain the difference between resource spending and resource usage.
Devise a plan of action for an online business to ensure compliance with ethical and legal standards of their e-commerce site.
Find the expected value of buying the extended warranty. The expected value of buying the extended warranty is . A new flat - screen TV comes with a 1 - year warranty wh ich completely covers any...
An Olympic runner is coming to visit your school. You have been told that a world class race has two stages. In the first stage, the runner accelerates at a constant rate until he reaches maximum...
Question 3(15 marks) An investor holds 100,000 units of a bond whose features per bond are summarized in the following table. She wishes to be hedged against a rise in interest rates. Maturity Coupon...
12. In a professional cycling race, competitors (the "peloton") begin the race by riding 45.0 km north, then the road turns west by 37 for the next 50.0 km, before turning due west for the final 35.0...
Whateva Ltd uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. The costing system for manufacturing has two direct cost categories...
Baselinedefine it and give an example. LO5
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
Calculate the wind speed required to move one of the Racetrack Playa rocks. Assume that the rock is rectangular, with sides of 30 cm, and height of 20 cm, and that it is a limestone. Assume that the...
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools. Each of the product lines is produced...
Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing...
Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing...
Choose two stocks from the same industry to minimize the influence of other confounding factors. You choose the industry that you are relatively more familiar with, and then estimate the implied...
why should Undertake research to review reasons for previous profit or loss?
A pension fund's liabilities has a PV01 of $200 million. The plan has $100 billion of assets with a weighted average modified duration of 8. The highest duration bond that the plan can invest in has...

How does the length of the time horizon affect the classification of a cost as fixed or

Question:

Step by Step Answer:

The longer the time period the more ...View the full answer

Cost Management Accounting And Control

Students also viewed these Managerial Accounting questions