How is the relevant range of activity related to fixed and variable cost? Give an example of
Question:
How is the relevant range of activity related to fixed and variable cost? Give an example of how the definitions of these costs become invalid when volume is outside the relevant range.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 52% (19 reviews)
The definitions of both fixed and variable costs are b...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Managerial Accounting questions
-
What is the relevant range of activity as used in budgeting?
-
Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct...
-
Calculate fixed and variable cost data for evaluating alternative approaches using the following data: ________________________Alternative 1___________Alternative 2 Annual fixed...
-
How might a shareholders agreement influence a companys financial report-ing objectives?
-
There are added benefits to ensuring that there are sets of checks and balances in place. Measuring provides baselines, and then can help your employees know where they should focus their attention....
-
Determine if f is even. odd, or neither. f(x) = 7x + 3x = x
-
18-3. Qu otras decisiones pueden afectar los objetivos publicitarios ?
-
Power Serve Company expects to operate at 85% of productive capacity during April. The total manufacturing costs for April for the production of 30,000 batteries are budgeted as follows: Direct...
-
You observe that a firms profit margin is below the industry average, while its return on equity and debt ratio exceed the industry average. Why can this happen? Please list a possibility.
-
Xia Corporation is a company whose sole assets are $100,000 in cash and three projects that it will undertake. The projects are risk-free and have the following cash flows: Xia plans to invest any...
-
Are companies with predominately fixed cost structures likely to be most profitable?
-
Which cost structure has the greater risk? Explain.
-
The following cash T-account for Miller Manufacturing summarizes all the transactions affecting cash during 2012. a. Compute the ending cash balance.b. Prepare a statement of cashflows. Cash...
-
Kelly Corporation received an advanced payment of \(\$ 30,000\) in 2018 from Rufus Company for consulting services. Kelly performed half of the consulting in 2018 and the remainder in 2019. Kelly...
-
Rosa Dominguez, the owner of Elegant Dining in San Jose, California, is pondering whether to buy electronic menu technology and tablets for her five-star restaurant. Prices for a typical four course...
-
Dura Corporation makes metal frames for several world brands of portable home generators. They sell the frames to a wide variety of portable generator manufacturers such as DeWalt, DuroMax, Generac,...
-
Rocker Industries (RI) produces recreational in-line skates (see Exhibit 14.36). Demand is seasonal, peaking in the summer months, with a smaller peak demand during December. For one of their more...
-
The BOM, current inventory, and lead time (in months) for the in-line skates in Rocker Industries (A) case is shown in Exhibit 14.37. Using the chase demand strategy, you developed in Rocker...
-
Periodic or Perpetual Inventory Methods (SIA) The terms periodic and perpetual inventories are referred to frequently in presenting the accounting procedures that are followed by businesses in...
-
Explain the buyers position in a typical negotiation for a business. Explain the sellers position. What tips would you offer a buyer about to begin negotiating the purchase of a business?
-
Methane gas, CH 4 , reacts with oxygen to give 5.00 g of water according to the chemical reaction: CH 4 (g) + O 2 (g) CO 2 (g) + H 2 O(l) Draw a stoichiometry concept map and calculate: (a) The mass...
-
Shatner Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:...
-
Blowing Rock Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by...
-
(a) Bert Company budgets sales of $1,250,000, fixed costs of $450,000, and variable costs of $200,000. What is the contribution margin ratio for Bert Company? (b) If the contribution margin ratio for...
-
Need help filling out these tax forms. Not sure how to do 1040 page 2 or schedule 3. I think I have schedule 1 right but need help with the itemized deductions for 1040 page 1 Required information...
-
Question:What should Airbus and Boing have learned from IBERIA case? What changed in the industry when Boing decided to develop Dreamliner in 2003?( Read the following case and ppt) Airline Route...
-
Which of the following needs to be always assessed when you are evaluating the literature you have obtained for your research? O All of the above O Sufficiency Value O Relevance Several approaches...
Study smarter with the SolutionInn App