1. "Cost accounting is a form of managerial accounting that aims to capture a company's total cost ofproduction by assessing the variable costs of each step of production as well as fixed costs."Required to:a.Discuss the cost classification by behavior giving your own examples for each. Also, explainhow these costs change with change in the level of activity.b. Explain the role of demand and cost in pricing decisions.2. "Marginal costing is the technique of presenting cost data wherein variable costs and fixed costs areshown separately for managerial decision making."uired to:Explain the application of Marginal costing in Selection of Product Mix by giving your own numericalexample.

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Answered: 1. "Cost accounting is a form of…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

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How does fixed cost affect marginal cost? Why is this relationship important?
Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs
3. With the aid of a graph, explain why marginal costs will necessarily intersect average total cost whenever average total cost reaches a minimum for “well-behaved” cost curves. (Can you show this mathematically? HINT: Think of properties that must be satisfied at a minimum.) I will thumbs up solution if it is original answer and not from ChatGPT, if ChatGPT is used I will thumbs-down and report to Chegg. thank you! :)
3. Which of the following types of cost is directly dependent on a firm's output rate? a. fixed cost b. variable cost c. sunk cost d. overhead cost 4. Which of the following expenditures would NOT be likely to generate sunk costs? a. those for advertising a new product b. those for purchasing assets (e.g., a jet aircraft) that can easily be resold. c. those for purchasing specialized machinery that can be resold only for scrap d. those for legal services to obtain regulatory approval for business operations 5. The law of diminishing marginal utility a. states that as the rate of consumption of commodity X goes up, total utility must decrease. b. explains why consumers limit their rates of consumption of any commodity in any period. c. applies only if the consumer is changing his/her rates of consumption of all commodities. d. none of the above
4) Which of the following cost curves is upward sloping at any output level? Average fixed cost (AFC) curve Variable costs (VC) curve Marginal cost (MC) curve Fixed costs (FC) curve O OO O
QUESTION 19 Marginal cost is the: O C. change in average variable cost that results from producing one more unit of output O D. change in average total cost that results from producing O A. rate of change in total fixed cost that O B. change in total cost that results results from producing one more unit of output from producing one more unit of output one more unit of output
3) Which of the following is not true about the marginal cost? Oo The marginal cost (MC) curve is U shaped. It can be calculated by dividing the change in the total cost by the change in the output. It is the additional cost incurred by a firm from changing output by a certain amount. It can be calculated by dividing the total cost by the quantity.
14. Explain which of the following is a fixed cost or a variable cost for Southwest Airlines. a. The cost of jet fuel used in its airplanes. b. The monthly rent on its Dallas, Texas headquarters. c. The yearly lease payments on its current inventory of Boeing 737 jets. d. The cost of peanuts it serves to passengers. e. The salary paid to Laura Wright, Southwest's Senior Vice President of Finance and Chief Financial Officer. f. The gate rental fees it pays to McCarran International Airport in Las Vegas, Nevada.
Gains from Trade - End of Chapter Problem Between 2016 and 2017, Nintendo produced 2.3 million NES Classic Edition mini consoles that sold out almost immediately as they arrived at stores. The retail price of the mini console was $59.99. However, if you were to check eBay at the time, you would see that people were buying the units for $250 each from scalpers. a. The price of $250 tells scalpers O they should continue to buy the console at the store and resell it on eBay for a higher price. they should keep the consoles they have already purchased and hang onto to them, as they will be considered antiques someday. they should no longer buy and resell the consoles because the price on eBay is too high to make a profit. b. Upon observing that the only way to obtain the gaming console is to buy it on eBay for $250, a consumer might do which of the following? Select all that apply. Consider buying another type of gaming console that is cheaper. Approach a family member about sharing the…
What is the difference between accounting profit and economic profi? OA Economic profit subtracts both explicit and implicit costs from total revenue, while accounting proft only subtracts explicit costs. OB. Accounting profit only subtracts implicit costs from total revenue, while economic profit only subtracts explicit costs. OC Economic profit only subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting profit suberacts both explicit and implicit costs from total revenue, while economic profR only subtracts explicit costs
3. The relationship between marginal and average costs Consider the following scenario to understand the relationship between marginal and average values. Suppose Latasha is a professional basketball player, and her game log for free throws can be summarized in the following table. Fill in the columns with Latasha's free-throw percentage for each game and her overall fre-throw average after each game. Game Free-Throw Percentage 80 Average Free-Throw Percentage 80 Game Result 8/10 4/10 2/8 2/4 6/8 Game Total 8/10 12/20 14/28 16/32 22/40 1 2 3 4 On the following graph, use the orange points (square symbol) to plot Latasha's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot her overal average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 100 Gane Free Tow Percenege 70 Average Fre-Tow Percartage 20 10 GAME…
10. Suppose a firm must pay an annual tax, which is a fixed sum, independent of whether itproduces any output.a. How does this tax affect the firm’s fixed, marginal, and average costs?b. Now suppose the firm is charged a tax that is proportional to the number of items itproduces. Again, how does this tax affect the firm’s fixed, marginal, and average costs?

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