Describe a potential cost driver for each of the variable and mixed costs you listed. Explain why each cost driver would be appropriate for its associated cost.
Answer to relevant QuestionsDiscuss how easy or difficult it was for you to decide whether each cost was fixed, variable, or mixed. Describe techniques a company could use to determine whether a cost is fixed, variable, or mixed. A firm wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis performed using Excel 2007 showed the following information: 1. ...Following are 12 cost behaviour graphs. The total cost is shown on the y-axis and the volume (activity) is shown on the x-axis. For each of the following situations, identify the graph that most closely represents the cost ...Alice Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance ...Bayview Apartments is a 500-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $200,000. When occupancy dips to 80%, monthly operating costs fall to $197,000. The owner of the ...
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