If volume is increasing, would a company benefit more from a pure variable or a pure fixed

Question:

If volume is increasing, would a company benefit more from a pure variable or a pure fixed cost structure? Which cost structure would be advantageous if volume is decreasing?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

See More Books

Question Posted: Dec 07, 2011 03:21 AM

See More Questions

Would a fixed or variable cost structure be more advantageous if volume is decreasing?
If f is increasing and f(x) > 0 on l, the g(x) = 1/f(x) is decreasing on l.
What are the properties of PDEs used to justify the principle of superposition? Does the principle of superposition apply to the following PDE? Justify your answer. f(x) t Ju dy 0 (i) Given a...
Use the Chain Rule to calculate the partial derivatives. Express the answer in terms of the independent variables. OF -; F(u, v) = eu+v, u = x, v = xy
Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All statement of financial position data are as of December 31, 2017, and December 31, 2016....
Find a 5 and a n for the following geometric sequences. a 4 = 64, r = -4
Household energy expenditure. Refer to the analysis of the annual total household expenditure on energy from 2011 to 2020, Exercise 12.20 (p. 729). You fit a first-order multiple regression model to...
J. T. Lu and Company, a manufacturer of quality handmade walnut bowls, has had a steady growth in sales for the past 5 years. However, increased competition has led Mr. Lu, the president, to believe...
O Grady Apparel Company was founded nearly 160 years about when an Irish merchant named O Grady landed in LA with an inventory of heavy canvas, which he hoped to sell for tents and wagon covers to...
Consider a database that consists of the following relations. SUPPLIER(Sno, Sname) PART(Pno, Pname) PROJECT(Jno, Jname) SUPPLY(Sno, Pno, Jno) The database records information about suppliers, parts,...
Explain the limitations of using operating leverage to predict profitability.
When are economies of scale possible? In what types of businesses would you most likely find economies of scale?
True Or False In cases of slander, pecuniary losses are not necessary.
1. The KYM company wants to invest $ 523,000 pesos in the bank that guarantees a simple interest rate of 3.32% quarterly. If the company is considering the 8-month investment. What amount will you...
3. (5 points) The uncertainty principle limits our ability to determine simultaneously the position and momentum of a particle. (a) Why were classical physicists unaware of the limitations that this...
CASE STUDY Patient Name Valarie Ramirez Attending Paul F. Buckwalter, MD PATIENT INFORMATION DOB 08/04/1986 Allergies MAN 00-AA-006 Penicillin Other Information Past HX: AB x1 Valarie Ramirez arrives...
Petesy Corporation is preparing its Master Budget for 2019. Budget information is as follows: SalesProduction CostOperating Expenses 20191 st Quarter P280,000P192,000P64,000 2 nd Quarter 320,000...
A steady flow of 20 m3/s of moist air at TDB = 35iC, TWB = 25iC, 100 kPa (state 1) is dehumidified by first cooling it and condensing out moisture (state 2), then reheating it to 20iC and 50% R.H....
Use the standard normal distribution table and z-values to compute normal probabilities.
Splitting hairs, if you shine a beam of colored light to a friend above in a high tower, will the color of light your friend receives be the same color you send? Explain.
Why is taking too much Valium not as dangerous as taking too much Phenobarbital?
Explain the term stakeholder. Distinguish between stakeholders with a direct versus an indirect interest in the companies that issue accounting reports.
Why is accounting called the language of business?
What is the primary mechanism used to allocate resources in the United States?
P 1 2 7 Acquisition in Multiple Steps LO 1 5 Peal Corporation issued 4 , 0 0 0 shares of its $ 1 0 par value stock with a market value of $ 8 5 , 0 0 0 to acquire 8 5 percent of the common stock of...
Eye Deal Optometry leased vision - testing equipment from Insight Machines on January 1 , 2 0 2 4 . Insight Machines manufactured the equipment at a cost of $ 2 0 0 , 0 0 0 and lists a cash selling...
help! ee all photos + Add to o e D C N X Edit & Create Share Table of Contents No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years. Net...

If volume is increasing, would a company benefit more from a pure variable or a pure fixed

Question:

Step by Step Answer:

With increasing volume a company would benefit more from a fixed cost structure because of ...View the full answer

Fundamental Managerial Accounting Concepts

Students also viewed these Managerial Accounting questions