Managers often assume a strictly linear relationship between cost and the level of activity. Under what conditions

Question:

Managers often assume a strictly linear relationship between cost and the level of activity.

Under what conditions would this be a valid or invalid assumption?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259917066

8th edition

Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen

See More Books

Question Posted: Jan 16, 2019 07:59 AM

See More Questions

Managers often assume a strictly linear relationship between cost and volume. How can this practice be defended in light of the fact that many costs are curvilinear?
Like many forms of analysis, cost-volume-profit (CVP) analysis must make assumptions so that calculations can be made. The following statements inaccurately describe the basic assumptions of CVP...
Given below are a number of charts, each indicating some relationship between cost and a cost driver. No attempt has been made to draw these charts to any particular scale; the absolute numbers on...
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of 60 stock mutual fund shares ($ 40 per share) and long term capital gain distributions of 45 stock mutual...
Using transactions listed in E6-5, indicate the effects of each transaction on the liquidity metric days' sales in receivables and profitability metric return on sales. In E6-5 July 3 Received $2,500...
calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Principal Time Period (years) Nominal Rate (%) Interest Compounded Compound...
As can easily be shown, the probabilities of getting 0 , 1 , or 2 heads with a pair of balanced coins are $\frac{1}{4}, \frac{1}{2}$, and $\frac{1}{4}$. What is the probability of getting 2 tails...
Dana Rand owns a catering company that prepares banquets and parties for both individual and business functions throughout the year. Rand's business is seasonal, with a heavy schedule during the...
Guatemala can produce two goods - coffee and bananas. If it allocates all of its resources to coffee production, it can produce 80 units of coffee and if it allocates all of its resources to bananas,...
Frederick Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows a $15,141...
If rice costs $1.60 per kilogram, determine the cost of 1 pound of rice. When necessary round your answers to the nearest hundredth.
What is job-order costing?
In Exercises, find the x-values (if any) at which is not continuous. Which of the discontinuities are removable? f(x) = X X3 X - EX
Provide a clear definition of SES (Socioeconomic Status), encompassing its components such as income, education, and occupation. Discuss the societal implications of SES and its role in shaping...
8. Let's assume that firm T faces a downward-sloping (straight-line) demand curve. (a) Fill in the columns for TR and MR in the table below. (Note that the figures for MR are entered between 0 and 1,...
Levinn's utility function is expressed as the following: U= C1 C2 0.3 where C1 is his first period consumption and C2 is his second period consumption. His income in the first period is $2500 and...
1. Why have neo-classical economists generally argued that international economic relations are not zero-sum in character? What theoretical frameworks have they used to support this argument? It's...
3. Consider a two period problem where a consumer has preferences over consumption in the two periods given by: log c + Blog c'. She has no initial assets and has income y in the first period y' in...
Are the eigenfunctions of H for the particle in the one-dimensional box also eigenfunctions of the momentum operator p x ? Calculate the average value of p x for the case n = 3. Repeat your...
The domain of the variable in the expression x 3/x + 4 is________.
Staci Valek began making pottery several years ago as a hobby. Her work is quite creative, and it has become so popular that she has decided to quit her job with an aerospace firm and manufacture...
You have just been hired by Ogden Company to fill a new position that was created in response to rapid growth in sales. It is your responsibility to coordinate shipments of finished goods from the...
You have the following information about the activities of Martin Inc. for 2014: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500,000 Factory...
How do the mechanisms of ventilation and gas exchange operate synergistically in facilitating the diffusion of oxygen and carbon dioxide across the respiratory membrane, ensuring optimal...
How do environmental factors, such as altitude, temperature, and atmospheric composition, influence respiratory physiology, necessitating adaptive responses at both the cellular and systemic levels...
discuss the evolutionary adaptations of the respiratory system across taxa, highlighting the diversification of respiratory structures and mechanisms in response to ecological niches and selective...

Managers often assume a strictly linear relationship between cost and the level of activity. Under what conditions

Question:

Step by Step Answer:

The linear assumption ...View the full answer

Introduction to Managerial Accounting

Students also viewed these Business questions