Question: 1. How is a fixed cost different from a variable cost? 2. Why do most fixed costs sooner or later become variable costs?

1. How is a fixed cost different from a variable cost?

2. Why do most fixed costs sooner or later become variable costs?

Step by Step Solution

★★★★★

3.33 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To address your questions about fixed and variable costs lets break it down into two parts 1 Difference Between Fixed Costs and Variable Costs Fixed C... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. How is a fixed cost different from a variable cost? 2. Why do most fixed costs sooner or later become variable costs?

How do step variable costs differ from fixed costs?

How do variable costs and fixed costs differ? Give an example of each.

it will be great if some account experts can answer my 10 of this questions. QUESTIONS 3-1 What is a cost driver? Give three examples of costs and their possible cost drivers. 3-2 Explain linear-cost...

Requinen Hie lises Veriativ cout peer wht (x) Burunt Cermoution nargan mata at x fintor take Hy men Fenatil Coot per onif. o Price as whetin ctat fiatio Pnce, Variable Cost per Unit, Contribution...

= Homework: Chapter 14 Pricing Decisions Question 6, E14-24 (similar to) Part 1 of 8 HW Score: 9.48%, 1.14 of 12 points Points: 0 of 1 Save Next Gen is going to introduce a combination phone/tablet...

Training and Development 7 Blend Images/Blend Images/Superstock Learning Outcomes Define the terms training and development. After reading this chapter, you should be able to do the following:...

Hi I need the answers for question 2 and and question 5 Assignment Questions Spring Semester 2017 Question 1 Cost function; breakeven; targeted profit; uncertainties and bias; interpretation Joe...

Case Description This case is adapted from a similar case study developed by Meric, Dunne, Li and Meric (2010). Interested students can read and workout the entire case referenced below: Meric, I.,...

o Fiber Systems manufactures an optical switch that it uses in its final product Fiber Systems incurred the following manufacturing costs when it produced 73.000 units last year Click the icon to...

If a mutual fund charges a front-end load of 3%, how much must the investor pay per unit if the NAVPS is $10.00? A. $9.70 B. $10.00 C. $10.16 D. $10.31 E. $13.00

1. You have been asked to review the valuation of Santiago Cement, a small Peruvian cement company, by an M&A analyst, for acquisition by a US cement company. The analyst has estimated a value of 1...

An owner investment of a building, valued at $100,000 with an $80,000 outstanding mortgage, transferring this asset into the business would O A. increase shareholders' equity by $20,000 OB. increase...

Politics ____ a set of activities performed in every country. is are A and B some other option

For a set of 70 coin flips, we record 21 heads and 49 tails. 1) If p is the true probability of heads, what is our best estimate for p here? 2) What is our best estimate for the standard deviation

Question 1 Corinth Biotech Limited (CBL) started operations in January 2018. CBL reports under IFRS. The following activities occurred during the year: 1. On January 31, 2018, the shareholder, John...

You are given the following information: Stockholders' equity as reported on the firm's balance sheet =52.5 billion, price/earnings ratio = 20.5 , common shares outstanding = 230 million, and...

The manager for retail customers, Katie White, wants to hear your opinion regarding one business offer she has received from an entrepreneur who is starting a mobile phone app called Easy Money. The...

Suppose that XA has the Weibull survival function Sx^(x) = -, x 0, and A has an exponential distribution with mean 7. The Loglogistic distribution with parameters 7 and T2 has cdf F(x)= (x/T1) 1+...

Dropping a product Merchant Company manufactures and sells three models of electronic printers. Ken Gail, president of the company, is considering dropping model JT484 from its product line because...

Discuss whether the Balanced Scorecard strategy map approach is a performance measurement system, a management system, or both.

1. What does a capital spending plan do? 2. What is an example of a capacity-related expenditure?

A $1000 investment is made today. Calculate its maturity values for the six combinations of terms and annually compounded rates of return in the following table.

Nelson borrowed $5000 for 4 years. For the first 2 years, the interest rate on the loan was 8.4% compounded monthly. Then the rate became 7.5% compounded semiannually. What total amount was...

How much more will an investment of $10,000 be worth after 25 years if it earns 6% compounded annually instead of 5% compounded annually? Calculate the difference in dollars and as a percentage of...