The cost formula is useful because: A. The equation estimates the per unit cost that results from

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

Question:

The cost formula is useful because:

A. The equation estimates the per unit cost that results from changes in activity levels

B. The equation states the total cost as fixed costs change with the level of activity

C. The equation makes it very easy to calculate what the total mixed cost would be for any level of activity

D. The equation provides the company a tool to manage all mixed costs after financial statement have been created

Related Book For answer-question

Managerial Accounting

ISBN: 978-1259024900

9th canadian edition

Authors: Ray Garrison, Theresa Libby, Alan Webb

See More Books

Posted Date: Apr 27, 2022 06:08 AM

See More Questions

It is easy to manage unused capacity for engineered costs relative to discretionary costs. Do you agree? Explain briefly.
Would it be true that fixed costs will never change in an organization? Explain the rationale for your answer.
Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4 00012 000 units REQUIRED: Calculate the following: a. Break-Even Point in b. Units to be sold to obtain the...
List the directors duties in respect of going concern basis.
a. What is the difference between budget lapsing and line- item budgets? b. What types of organizations would you expect to use budget lapsing? c. What types of organizations would you expect to use...
This information is available for Bonita's Photo Corporation for 2018, 2019, and 2020. 2018 2019 2020 Beginning inventory $112,000 $312,000 $415,000 Ending inventory 312,000 415,000 478,000 Cost of...
The stress-strain diagram for the material of a column can be approximated as shown. Plot $P / A$ versus $K L / r$ for the column. (MPa) 350- 200- (in./in.) 0 0.001 0.004
On October 1, 2013, Koppa Corp. issued $700,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2013, and pay interest annually on October 1. Financial statements are prepared...
A goldfish is swimming inside a spherical bowl of water, which has an index of refraction of n = 1.333. Suppose the goldfish is at p = 10.0 cm from the wall of the bowl, which has a radius |R| = 15.0...
Mike Greenberg opened Kleene Window Washing Inc. on July 1, 2022. During July, the following transactions were completed. July 1 Issued 12,000 shares of common stock for $12,000 cash. 1 Purchased...
Consider a Treasury bond with an 8% coupon rate and 4 years to maturity (annual coupons). You enter into a forward contract to purchase this bond two years from today right after the second coupon is...
Should a student with a severe intellectual disability, such as Neill Roncker, who could interact in a regular gym or music class be required to be mainstreamed into a regular school setting?
When would ABC give more accurate costs than traditional costing system?
What obligation does the school have to protect the student with a disability who is placed in the regular classroom from undue teasing by other students or to take special steps to ensure that there...
How does ABC differ from the traditional costing approach?
Most states do not have preschool programming available to all children within the state and, as a result, must place students with disabilities in private programs. As a practical matter, can the...
Greg is the owner and beneficiary of a $100,000 policy on the life of his mother. Greg gives the policy to his brother, Don. Don subsequently pays premiums of $40,000. Upon his mother's death, how...
Suppose that a business sells 6-month subscriptions to its monthly magazine. On January 1, the company receives a total of $600 for 10 subscriptions. To record this transaction, the company debits...
Audiophonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom moulded to each customers ear. Cost data for the product follow:...
MediaSol Inc. produces affordable, high-quality personal multimedia entertainment devices. The companys Video Division manufactures three portable video playersthe Standard, the Deluxe, and the Pro...
Refer to the data in Exercise 38 for Brentline Hospital. In exercise Required: 1. Using Microsoft Excel, prepare a scattergram using the data from Exercise 38. Plot cost on the vertical axis and...
Two projects of equal value have been evaluated using a multifactor productivity measure that combined labor-hours at $$30$ per hour and overhead expense calculated as 20% of labor expense for the...
One road-paving crew of six people worked 8 hours to pave 25 miles of two-lane road, while a smaller crew of four people worked 12 hours to pave 15 miles of four- lane road. Which crew was more...
The Bankston fulfilment center of Universal Logistics is a large warehouse that packs and ships customer orders from client on-line retailers. Five employees have been nominated for a productivity...

The cost formula is useful because: A. The equation estimates the per unit cost that results from

Question:

Expert Answer:

C The equation makes it very easy to calculate what the total mixed co... View the full answer

Managerial Accounting

Students also viewed these accounting questions