Fixed cost is the quizlet
WebOct 22, 2024 · Fixed costs are costs that do not change when sales or production volumes increase or decrease. Fixed costs can include property taxes, rent, salaries and the cost of benefits for non-sales and management personnel. They are one of three types of costs incurred by most businesses. WebTerms in this set (20) A cost that can be avoided by choosing one alternative over another is relevant for decision purposes. Sunk costs are never relevant in decision making. Future costs that do not differ between the alternatives in a decision are avoidable costs. Fixed costs are sunk costs.
Fixed cost is the quizlet
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WebStudy with Quizlet and memorize flashcards containing terms like The short run is a period of time in which... a) The amount of output is fixed. b) Nothing the firm does can be altered. c) Prices and wages are fixed. d) The quantities of some resources the firm uses are fixed., The Short Run is a period of time in which? a) Nothing the firm does can be altered b) … WebA. identify the relevant and irrelevant costs of a business B. determine the sales level at highest capacity C. separate mixed costs into their variable and fixed components D. determine the highest price that can be charged for a product C Contribution margin ratio is the ratio of contribution margin to ________. A. total fixed costs
WebWhat is the fixed cost of production at Betty's Bakery? a. $51 b. $25 c. $12 D. $20 c. the marginal cost curve eventually rises with the quantity of output Which of the following statements is correct? a. The average fixed cost curve must eventually rise b. The average total cost curve first rises, then falls with increased output WebMay 4, 2024 · Variable cost vs. fixed cost. There are two main types of costs: variable and fixed. A business’s fixed costs are those that remain the same despite the level of output for that month. Fixed costs are those that are incurred on a consistent basis regardless of business activities.
WebTerms in this set (27) the cost to lease warehouse space for completed jeans - the lease contract runs for 2 years of $5,000 per year (variable, committed fixed, or discretionary fixed cost) the salary of a summer intern (variable, committed fixed, or discretionary fixed cost) the cost of landscaping and mowing the grass - the contract with a ... WebStudy with Quizlet and memorize flashcards containing terms like 11-1: Define fixed cost and variable cost and give an example of each., 11-6: If volume is increasing, would a company benefit more from a pure variable or a pure fixed cost structure? Which cost structure would be advantageous if volume is decreasing?, 11-7: Explain the risk and …
WebStudy with Quizlet and memorize flashcards containing terms like The sum of fixed cost and variable cost at any rate of output is, The change in total output associated with one additional unit of input is the, At 4 units of output in Table 21.4, total …
WebIn management accounting, fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales. In marketing, it is necessary to know how costs divide between variable and fixed. Marginal costs five types of adulteryWebA cost incurred in the past that is not relevant to any current decision is classified as a (n): sunk cost. All of the following are examples of product costs except: depreciation on the company's retail outlets. An example of a committed fixed cost … can i write off a bad investmentWebThe law of _____ returns states that as successive units of a variable resource are added to a fixed resource, beyond some point, the marginal product will decline. Diminishing Your company's total sales revenue for the month is $150,000; the costs to produce your products are $12,000 for rent, $6,000 for utilities, and $42,000 for employee wages. can i write off a home officeWebFixed Cost. A cost that does not change of goods is produced. Variable Cost. cost that rises or falls depending on the quantity produced. Total Cost. cost of producing one more unit of a good. Marginal. fixed variable producing one more unit of a good. Marginal … can i write off a cash gift to my childfive types of argument claimsWebIn the equation y = $7.20x + $250,250. $250,250 are the total fixed costs. If a company's overhead cost equation is y = $8.80x + $120,020. The "x" is. volume of activity. What term represents the total variable cost component in the equation: y = vx + f. vx. What term represents the variable cost per unit of activity in the equation: y = vx + f. five types of analyticsWebIf average total cost is declining, then: A. marginal cost must be greater than average total cost. B. the average fixed cost curve must lie above the average variable cost curve. C. marginal cost must be less than average total cost. D. total cost must also be declining. C When average fixed costs are falling: can i write off 401k losses