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 ...
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...
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...
Consider two disjoint populations of agents (men and women, employers and employees, lawyers and clients) who periodically bargain pairwise over their shares of a fixed “pie.” One of these populations consists of row players and the other of column players. We shall assume that the players ...
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
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...
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The cost of direct material is an example of a fixed cost. True or False? The amortization of a premium on bonds payable decreases bond interest expense. (a) True (b) False. At the end of the fiscal period, prepaid expenses are reported on the Income Statement as...
Fixed assets are resources with an expected life of more than a year, such as plants, equipment, and buildings. An accounting adjustment known asdepreciationis made for fixed assets as they age. It allocates the cost of the asset over time. Depreciation may or may not reflect the fixed ass...
In general, the discount rate used to calculate the present value of an annuity should reflect the individual's opportunity cost of capital, or the return they could expect to earn by investing in other financial instruments. For example, if an individual could earn a 5% return by investing ...