Why are fixed costs also called capacity costs?

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Introduction To Management Accounting

ISBN: 9781292412566

17th Edition, Global Edition

Authors: Charles Horngren, Gary L Sundem, Dave Burgstahler

See More Books

Question Posted: Apr 26, 2023 08:00 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Youve just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual...
Polly Peyrotte started designing and decorating fine china plates more than 100 years ago. As her artistry caught on, she became famous. She also turned out to have considerable business skills. She...
A car manufacturer designs a fuel-efficient car for 1993. The company argues that the car can attain an average of 45 miles per gallon. The miles per gallon of the car follows a normal distribution...
On January 1, 2009, Straud Co. sold a piece of equipment with a book value of $29,000 for $24,600. The equipment had cost $89,000 when it was purchased. Explain why the following journal entry is...
Obtain the Health and Safety Policy from any organisation and assess the policy in the light of these four points. LO4
KEY TERMS Define each of the following terms: a. Mission statement; corporate scope; statement of corporate objectives; corporate strategies b. Operating plan; financial plan c. Spontaneously...
Variable costing versus absorption costing. The Mavis Company uses an absorption-costing system based on standard costs. Total variable manufacturing cost, including direct material cost, is $3 per...
A company has total accounts receivable of $ 5 1 6 0 0 0 at year - end. It estimates that uncollectible accounts will be 3 % of accounts receivable. If Allowance for Doubtful Accounts has a credit...
For the 2 Ã 3 - 10 centrifugal pump performance curve shown in Fig. 13.28, describe the performance that can be expected from a pump with an 8-in impeller operating against a system head of...
Discretionary fixed costs are part of a companys periodic planning process and hence considered fixed only for the relevant period. Do you agree? Explain.
Andrew Miller recently opened a new doughnut shop near Cornwall, England. He sells doughnuts in packets of four each. The average price of a doughnut box is $4.00 and each box costs Andrew an average...
Your friend has recently told you that the federal government effectively subsidizes the use of debt financing (vs. equity financing) for corporations. Do you agree with that statement? Explain.
Are there more children diagnosed with Autism Spectrum Disorder (ASD) in states that have larger urban areas over states that are mostly rural? In the state of Pennsylvania, a fairly urban state,...
Problem PS9.2.4 0/5 points (graded)Suppose that in this economy all the funds for capital come from savings by the 10 individuals. Firms' demand for capital is given by QD=100100r . What is the...
As Renata explained her frustration with a coworker to the human resource manager, the manager quickly averted her eyes and began shuffling papers on her desk. Renata immediately felt uncomfortable....
Confidential counselling for mental health issues is available through the organization's: Multiple Choice group insurance plan workers' Compensation plan preventive care program employee recognition...
ABC Credit Finance is a credit card provider with regional payment processing centers. You are a manager of one of these centers. You are an at-will employee in a typical at-will jurisdiction. ABC is...
Is there enough statistical evidence to infer that male heads of households (HHSEX: 1 = male, 2 = female) are more likely to be married (or living with partner) than female heads of households...
Draw the major product for each of the following reactions: (a) (b) (c) 1) 9-BBN 2) H2O2, NaOH 1) Disiamylborane 2) H20, NaOH
Auditors for the Internal Revenue Service (IRS) scrutinize income tax returns after they have been prescreened with the help of computer tests for normal ranges of deductions claimed by taxpayers....
US Airways is one of the nations leading commercial air carriers, with hubs in Phoenix and Las Vegas. The following are some of the costs incurred by US Airways. For each cost, select an appropriate...
A staff meeting has been called at SportsLab, a drug-testing facility retained by several professional and college sports leagues and associations. The chief of testing, Dr. Hyde, has demanded an...
1. Compute the productivity profiles for each year. If required, round your answers to two decimal places. 2a. Did productivity improve? 2b. Explain why or why not
Explain: An office building is renting for $10/sf, with 50,000 total leasable square feet. Office buildings in the area are selling for cap rates of 5.5%. What information do you have and what are...
Practicum Co. pad $1.2 million for an 80% interest in the common stock of Sarong Co. Practicum had no previous equity interest in Sarong. On the acquisition date, Sarong's identifiable net assets had...

Why are fixed costs also called capacity costs?

Question:

Step by Step Answer:

Fixed costs are called capacity costs because they are expenses that a business incurs regardle...View the full answer

Introduction To Management Accounting

Students also viewed these Business questions