Answer and Explanation:1 d. None of the aboveremains constant as output increases. Costs that remain constant or do not change with the level of output are called total...
aA corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office sup...
4) What happens if ABC costing is used when costs vary with volume? a) ABC will not result in significantly different product cost or profitability figures than a traditional allocation system. It will, however, require more analysis and be more costly to sustain. b) ABC will not result in...
aThe costs of production that vary directly in proportion to the number of units produced. Variable costs often include labor expenses and raw material costs, because labor and raw material usually must be increased to increase output. Firms for which variable costs represent a high proportion of ...
Aisincorrect.Thecostdriverforqualityinspectioncostsislikelytobeeitherthenumberofunitsproducedorthenumberofbatchesproduced,dependingonwhetherqualityinspectionislinkedtobatchesproducedortotalproductionoutput.Thebatchsizeisnotafactorthatdrivestotalinspectioncosts.Cisincorrect.Somecostsofactivitiesmayvarywiththevolumeoftheactivit...
Explain what causes costs of production to vary with output in the short run. Describe an example of a technological innovation leading to an improvement in productivity. What was the effect on the cost of doing business or activity in which this t...
The cost driver for quality inspection is likely to be batch size. B The cost driver for materials handling and despatch costs is likely to be the number of orders handled. C In the short run, all the overhead costs for an activity vary with the amount of the cost driver for the activ...
Even though China is the biggest exporter of clothes, its attractiveness has been decreasing because of rising labor costs and increasing political tension. Garment worker wages vary significantly even in developing countries. The wages for garment workers in Asia is growing rapidly. ...
However, not only does that apply when we take chip pricing into account, the difference in pricing turns into a chasm when we factor in the other costs associated with building a PC. Both Intel and AMD support PCIe 5.0 and DDR5, which results in a gen-on-gen increase in motherboard ...
Fidelity: Costs Vanguard and Fidelity charge $0 commissions for online equity, options, and ETF trades for U.S.-based customers. Fidelity has a $0.65 per contract option fee; it's $1 at Vanguard. Fidelity has a $0.65 per contract option fee; it's $1 at Vanguard for clients with less...