The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify
Question:
The following cost graphs illustrate various types of cost behavior:
For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases.(a) Total direct materials cost(b) Electricity costs of $2,000 per month plus $0.09 per kilowatt-hour(c) Per-unit direct labor cost(d) Salary of quality control supervisor, $10,000 per month(e) Per-unit cost of straight-line depreciation on factory equipment
Cost Graph One Cost Graph Two Total Units Produced Total Units Produced Cost Graph Four Cost Graph Three Total Units Produced Total Units Produced %24 %24 %24 %24
Step by Step Answer:
a Cost Graph Four ...View the full answer
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Managerial Accounting questions
-
Give two examples of unethical behavior for each of these areas: inspection, process control, process capability. For each, name the relevant ethical principle.
-
Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for an automobile manufacture. a. Paper used in the magazine b. Maintenance on printing machines c....
-
Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a textbook publisher. a. Maintenance on printing machines b. Glue used to bind books c. Wages of...
-
Suppose the total cost in dollars of manufacturing q units is C(q) = 3q 2 + q + 500. a. Use marginal analysis to estimate the cost of manufacturing the 41st unit. b. Compute the actual cost of...
-
Using the bond from Practice Exercise 14-3A, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar.
-
Theorem 3.8 assumes that all calculations for det(A) are done by exact arithmetic. As noted previously, this is usually not the case in software. Hence, computationally, the determinant may not be a...
-
EXCEL Problem Objective: learn how to protect spreadsheets. Required: a. Read the article Keeping Secrets: How to protect your computer from snoops and spies, by Theo Callahan in the July 2007 issue...
-
Assume that the actuarially required pension plan contribution for a county for its general government employees is $8,000,000. Compute the pension expenditures to be reported in each of the...
-
What resources did OEM manufacturers require to deliver traditional ICE automobiles? Which of those resources were kept in-house and which were outsourced to external manufacturers? How did the...
-
Proctor compaction test in the laboratory on a borrow pit soil gives a maximum dry unit weight of 19 kN/m3 and optimum water content of 11.5%. The bulk unit weight and water content of the soil in...
-
Following is a list of various costs incurred in producing toy robotic helicopters. With respect to the production and sale of these toy helicopters, classify each cost as either variable, fixed, or...
-
For a major university, match each cost in the following table with the activity base most appropriate to it. An activity base may be used more than once, or not used atall. Activity Base: a. Number...
-
What does the term contingency mean? Why are contingencies so central to an understanding of how organizations function?
-
Find the x- and y-intercepts of the graph of the equation x-xy+3y=1. (Note that this does not require graphing the equation.) When writing your final answers, remember that intercepts are ordered...
-
Two 4.00 C charged particles are located on the x axis. One is at x = 1.00 m, and the other is at x = -1.00 m. (a) Determine the electric field on the y axis at y = 0.700 m. N/CI+ N/C j (b) Calculate...
-
What might be some areas where computer intelligence would be expected to outperform human intelligence? What are some of the ways you could extract knowledge from a human, to be programmed into an...
-
There are 5 taxis working at a taxi stop. The mean travel time from leaving the stop to coming back to stop takes 1 hour on average. On the other hand, the mean time between the arrivals of...
-
Solve. Check for extraneous roots. a) 42x-3 = 16 b) 40 = 5(4y-5) c) log, (x - 5) + log, (x + 3) = 1
-
In mid-2023, an article in the Wall Street Journal reported that the number of people who had failed to make a payment on their credit card for at least 90 days had increased by 50 percent from the...
-
Determine the reactions in supports A and D and connections B and C. Sketch its shear and moment diagram and determine the magnitude ankoration of the maximum shear and moment for every member. 18 3...
-
Express each of the following scientific notation values as an ordinary number. (a) 7.11 x 10 5 (b) 8.23 x 10 -4 .
-
Dakota Company experienced the following events during 2010. 1. Acquired $30,000 cash from the issue of common stock. 2. Paid $12,000 cash to purchase land. 3. Borrowed $10,000 cash. 4. Provided...
-
Vera Company experienced the following events during its first year of operations. 1. Acquired $16,000 cash from the issue of common stock. 2. Paid $3,500 cash for salary expenses. 3. Borrowed...
-
West Company was organized when it acquired $2,000 cash from the issue of common stock. During its first accounting period the company earned $800 of cash revenue and incurred $500 of cash expenses....
-
Complete the table to determine the effect of the number of compounding periods when computing interest. Suppose that $13,000 is invested at 3.7% interest for 14 yr under the following compounding...
-
A three year lease is entered into with the following terms: (Lesson 8.3) Economic life of asset is 6 years. Lease payments, made at beginning of the lease terms are $34,972.24. Fair value of asset...
-
A stock has had the following year-end prices and dividends: Year Price Dividend 1 $43.33 2 48.31 $0.54 3 57.23 0.57 4 45.31 0.80 5 52.23 0.85 6 61.31 0.93 What are the arithmetic and geometric...
Study smarter with the SolutionInn App