Fixed cost remains unchanged, irrespective of the number of garments produced, for a fixed period. The term ‘fixed’ should not be thought that the fixed cost never changes. An example of fixed cost may be the rent of a company, which is fixed for a certain time-frame. Conventional econo...
A wage paid to an employee is an example of a ___. a. total cost b. variable cost c. average cost d. fixed cost Cost: Total cost is calculated by adding both fixed and variable costs incurred in the production of goods or services. T...
Is nurse salaries an example of a fixed cost or a variable cost? Explain. Describe how costs flow from inventory to cost of goods sold for the following methods: (a) FIFO and (b) LIFO. (a) FIFO assumes costs flow in the order incurred. The earliest cost incurred is sent to ...
We attribute this to a firm pricing audits conditional on an understanding of their fixed cost structure.doi:10.1111/ijau.12279Christie NovakW. KnechelJohn Wiley & Sons, Ltd.International Journal of Auditing
Inherent Risk: Definition, Examples, and 3 Types of Audit Risks What Is Gross Income? Definition, Formula, Calculation, and Example Working Capital Management: What It Is and How It Works Fixed Cost: What It Is and How It’s Used in Business Financial Analysis: Definition, Importance,...
However, fixed assets do have a finite useful life, and accountants must record the decline in usefulness (the assets’ value) by recording periodic depreciation. Over time, each asset’s value is reduced, but financial statements will continue to use the original cost of the asset rather than...
Inspection cost only occurs when an inspection station is located after workstation; otherwise manufacturing cost will take place. Inspection cost is a sum of the fixed cost and the variable cost. The fixed cost is a sum of the costs connected with test-equipment installation, setup, etc. The...
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A P&L statement shows a company’s revenues and expenses related to running the business, such as rent, cost of goods sold (COGS), freight, and payroll. Each entry on a P&L statement provides insight into how much money a company made and spent. ...
Lease cost is an example of a(n) ___. A. discretionary cost B. mixed cost C. variable cost D. committed fixed cost Fixed Costs Vs. Variable Costs: There are two main types of costs: fixed and variable. Fixed costs remain the same ...