The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify
Question:
The following cost graphs illustrate various types of cost behavior:
For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases.
a. Direct material cost per unit.
b. Fees for using a patent of $250,000 plus $0.10 for each unit produced.
c. Salary of quality control supervisor.
d. Straight-line depreciation per unit on factory equipment.
e. Total direct materials cost.
Cost Graph One Cost Graph Two Total Units Produced Total Units Produced Cost Graph Three Cost Graph Four Total Units Produced Total Units Produced %24
Step by Step Answer:
a Graph Two ...View the full answer
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
Students also viewed these Business questions
-
Give two examples of unethical behavior for each of these areas: inspection, process control, process capability. For each, name the relevant ethical principle.
-
Standard direct material cost per unit of product X is P150 per 1kg @2kg is P300 Actual Production for the month is 49,000 units Actual Material Usage is 100,000kg (1kg@P145) Calculate the Material...
-
Direct material cost $ 85 comma 000 per unit of RS-32 Direct manufacturing labor time for first unit 3 comma 900 direct manufacturing labor-hours Learning curve for manufacturing labor time per radar...
-
Given the following data about XYZ Mutual Fund on Oct. 1: Assets: Liabilities: Cash = $40,000 Accrued fees and expenses = $5,000 1,000 Shares of Stock A: Closing Price $30 2,000 Shares of Stock B:...
-
Determine whether the graph is that of a function. An open circle indicates that the point does not belong to the graph. (a) (b) (c)
-
Use the following information on call and put options for Facebook to answer the questions. a. What is the intrinsic value of the call option that expires in June and has a $100.00 strike price? b....
-
P 2 Use the Standard Normal Table or technology to find the z-score that corresponds to the cumulative area or percentile. Table 4-Standard Normal Distribution Arca 0 z Z .09 .08 .07 .06 .05 .04 .03...
-
One of Naoto Companys major products is a fuel additive designed to improve fuel efficiency and keep engines clean. Naoto, a petrochemical firm, makes and sells 100,000 units of the fuel additive per...
-
Evaluate the role of non-traditional thermodynamic cycles, such as supercritical CO2 cycles, organic Rankine cycles, and Kalina cycles, in improving energy efficiency and reducing emissions in power...
-
You have $100,000 to invest in 10 stocks, $10,000 in each stock. You can't keep a large amount in cash, and you can't change your choices. Set up a watch account as I demonstrated in Powerpoint...
-
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c....
-
Equipment acquired on January 3, 20Y1, at a cost of $140,000, has an estimated useful life of 5 years and an estimated residual value of $15,000. a. What was the annual amount of depreciation for the...
-
This case describes what a large consulting company does to help retain a virtual workforce.(For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.) 1....
-
Has to be from the case : Yeti in 2020: Can Brand Name and Innovation Keep It Ahead of the Competition? make a strategic group map for the industry. You must identify two dimensions that drive the...
-
Profit for the year is $ 4 5 , 0 0 0 . ?Calculate Judy's owner's equity as at March 3 1 , 2 0 2 4 Judy Cumby is the sole owner of Cullumber, a public camping ground near Gros Morne National Park....
-
Using the MATLAB software , make a program . draw two balls,and one is in the order one.Cut part of the outside ball,so we can see the inside ball.
-
Comment on black swan events by responding to the following questions: What were the causes of these dramatic currency depreciations? What impact could black swan events (and the subsequent...
-
ET Mag Wheels of Benicia, California had the following transactions during the month of July 2 0 2 3 : Purchased raw materials on account, $ 9 1 , 6 0 5 . Raw Materials of $ 7 6 , 0 5 0 were...
-
Using the data presented in BE16-5 and BE16-6, assume Strand Corp. sells the bonds on January 1, 2015, at 98. Prepare the journal entry to record the sale of the bonds under each set of assumptions.
-
Name some of the various types of financial intermediaries described in the chapter and indicate the primary reason(s) each was created.
-
MyPhone Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,000 units of cellular phones are as follows: MyPhone desires a...
-
Based on the data presented in Exercise 12-15, assume that MyPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. (a) Determine the total manufacturing...
-
Based on the data presented in Exercise 12-15, assume that MyPhone Inc. uses the variable cost concept of applying the cost-plus approach to product pricing. (a) Determine the variable costs and the...
-
You are a supervisor at your company. You've overheard Employee A making offensive comments to other employees, and Employee B has complained about these comments. You've given Employee A a verbal...
-
What is the probability of developing and dying from cancer today?
-
On January 1, 2024, Majestic Mantles leased a lathe from Equipment Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase...
Study smarter with the SolutionInn App