+1-415-670-9189
info@expertsmind.com
Company observed a decrease in the cost per unit
Course:- Financial Accounting
Reference No.:- EM131258713




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Financial Accounting

A company observed a decrease in the cost per unit. All other things being equal, which of the following is most likely true?

The company is studying a variable cost, and total volume has increased.

The company is studying a variable cost, and total volume has decreased.

The company is studying a fixed cost, and total volume has increased.

The company is studying a fixed cost, and total volume has decreased.

The company is studying a fixed cost, and total volume has remained constant.

Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $1,000,000 and the cost per unit manufactured totaled $19. On the basis of this information, how much cost would the firm anticipate at an activity level of 215,000 units?

$4,010,000.

$3,997,000.

$3,989,000.

$3,800,000.

Some other amount not listed above.

Normal Company pays a sales commission of 4% on each unit sold. If a graph is prepared, with the vertical axis representing per-unit cost and the horizontal axis representing units sold, how would a line that depicts sales commissions be drawn?

As a straight diagonal line, sloping upward to the right.

As a straight diagonal line, sloping downward to the right.

As a horizontal line.

As a vertical line.

As a curvilinear line.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Accounting) Materials
Cargo, Inc., has two products: Product D (unit sales price, $25; unit variable cost, $15) and Product J (unit sales price, $14; unit variable cost, $9). The company’s sales mi
The Consulting Division of IBM Corporation is often involved in assignments for which IBM computer equipment is sold as part of a systems installation. Discuss the transfer-pr
Prepare the consolidation journal entries to account for Cricket Ltd's investment in Charlie Ltd for the year ended 30 June 2017 in accordance with AASB 128, assuming that C
A partnership began its first year of perations with the following capital balances: Young, Capital: $143,000; Eaton, Capital: $104,000; Thurman, Capital: $143,000.  Each part
describe how to avoid making suboptimal decisions. Your discussion should be supported by research and real world examples.
Ann Kyser, a teacher at Hewitt Middle School, is in charge of ordering the T-shirts to be sold for the school’s annual fund-raising project. The T-shirts are printed with a sp
On September 1, 2010, Dental Equipment Corporation sold equipment priced at $635,000 in exchange for a nine month note receivable with an annual interest rate of 18.2%, all du
Purpose a report that reconciles the total cost assigned to the ending work in process inventory and the units transferred out with the costs in the beginning inventory and