Question
A company produces and sells one product and has fixed manufacturing costs of 100,000. Which of the following statements is wrong? O If the company
A company produces and sells one product and has fixed manufacturing costs of 100,000. Which of the following statements is wrong? O If the company produces the break-even quantity and sells more units than it produces, the variable-costing profit will be positive! b. Under absorption costing, the profit changes with the produced quantity if the sold quantity remains unchanged. O c. If the company wants to show the lowest possible profit and if the company produces more units than it sells, the company should use absorption costing. O d. If the company sells the break-even quantity, the profit is zero. 14) Which of the following statements is wrong? O a. A step-by-step plan shows total cost-center costs for different levels of capacity utilization. O b. If companies highly use their machines, i.e., close to the capacity limit, cost functions are frequently convex. O c. The high-low method is highly sensitive towards the observation with the highest total costs and, thus, the linear regression is preferable. O d. When input costs change frequently, statistical methods for estimating cost functions are imprecise.
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