Question
My answers are bold and underlined, can you check my answers, please. ROK Tax Service is trying to determine the variable and fixed elements of
My answers are bold and underlined, can you check my answers, please.
ROK Tax Service is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity:
TOTAL SERVICE OVERHEAD
March: $22,900
April: $20,800
May: $26,800
CLIENTS SERVED
March: 112
April: 98
May: 138
Assuming 100 clients were served during the month, how much overhead would be incurred? my answer is 21,00
Which of the following statement regarding variable costs and fixed costs is FALSE?
Variable costs vary in total in direct proporation to the activity level whereas fixed costs remain constant regardless of the activity level.
Fixed costs remain constant on a per unit basis whereas variable costs change on a per unit basis. this is my answers.
Both fixed costs and variable costs are affected by the activity index.
Variable costs remain constant on a per unit basis where as fixed costs change on a per unit basis.
Which of the following statement regarding the Relevant Range is FALSE?
When using the relevant range, a straight-line relationship exists for both variable and fixed costs.
As long as the level of activity stays within the relevant range, the linear assumption produces useful date for CVP analysis.
In the real world, a straight-line relationship usually exists for variable costs.
By using the relevant range, it helps predict the manner in which variable costs will behave.
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