Question: Given here are a number of graphs. The horizontal axis of each graph represents the units produced over the year, and the vertical axis represents
Given here are a number of graphs. The horizontal axis of each graph represents the units produced over the year, and the vertical axis represents total cost or revenues.
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Required
Indicate by number which graph best fits the situation or item described (a– h). Some graphs may be used more than once; some may not apply to any of the situations.
a. Direct material costs
b. Supervisors’ salaries for one shift and two shifts
c. A cost-volume-profit graph
d. Mixed costs—for example, car rental fixed charge plus a rate per mile driven
e. Depreciation of plant, computed on a straight-line basis
f. Data supporting the use of a variable-cost rate, such as manufacturing labor cost of $ 14 per unit produced
g. Incentive bonus plan that pays managers $ 0.10 for every unit produced above some level of production
h. Interest expense on $ 2 million borrowed at a fixed rate ofinterest
Some other pattern 12 10
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