98. Understanding how costs behave is useful to management for all the following reasons except a....

Transcribed Image Text:

98. Understanding how costs behave is useful to management for all the following reasons except a. predicting customer demand b. predicting profits as sales and production volumes change c. estimating costs d. changing an existing product production 99. The manufacturing cost of Calico Industries for three months of the year are provided below. Production (units) April May June Total Cost $120,000 74,000 90,900 280,000 165,000 230,000 Using the high-low method, the variable cost per unit and the total fixed costs are a. $0.78 per unit and $4,000 b. $0.40 per unit and $8,000 c. $4.00 per unit and $800 d. $7.80 per unit and $4,000 100. As production increases, variable costs per unit a. stay the same b. increase c. decrease d. either increase or decrease, depending on the fixed costs 98. Understanding how costs behave is useful to management for all the following reasons except a. predicting customer demand b. predicting profits as sales and production volumes change c. estimating costs d. changing an existing product production 99. The manufacturing cost of Calico Industries for three months of the year are provided below. Production (units) April May June Total Cost $120,000 74,000 90,900 280,000 165,000 230,000 Using the high-low method, the variable cost per unit and the total fixed costs are a. $0.78 per unit and $4,000 b. $0.40 per unit and $8,000 c. $4.00 per unit and $800 d. $7.80 per unit and $4,000 100. As production increases, variable costs per unit a. stay the same b. increase c. decrease d. either increase or decrease, depending on the fixed costs

Answer rating: 100% (QA)

98 Comprehending how costs work is vital for all e... View the full answer