Using the following data of Baskins & Robbins shop answer the following questions:No. of ice cream Variable Cost Total Variable Total Fixedper ice cream costFixed cost perice creamproducedCostsO ice creamOMR 1.2OMR 0OMR 120025 ice cream1.2301200OMR 4850 ice cream1.26012002475 ice cream1.290120016100 ice cream1.2120120012 a. Draw a chart that shows the total variable costs for ice cream at various levels of activity.b. Draw a chart that shows the variable costs for each ice cream at various levels of activity.

Variable costs are those costs which will increase or decreases with the change of concerned…

Answered: a. Draw a chart that shows the total…

a. Draw a chart that shows the total variable costs for ice cream at various levels of activity. b. Draw a chart that shows the variable costs for each ice cream at various levels of activity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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a. Draw a chart that shows the total variable costs for ice cream at various levels of activity.
b. Draw a chart that shows the variable costs for each ice cream at various levels of activity.

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• The unit cost… a. is the total conversion costs divided by the number of units produced. b. is the total product costs divided by the number of units produced. c. product plus period cost d. is the total prime costs divided by the number of units produced. e. includes period costs.
When the level of activity decreases, variable costs will:A - increase per unit.B - increase in total.C- decrease in total.D- decrease per unit
On a cost-volume-profit graph, the revenue line will be shown below the total expense line for any activity level above the break-even point. FALSE O TRUE
PLEASE ANSWER ALL 4. A cost management system will provide the means to developa. The most accurate product or service costs.b. A reasonably accurate product or service costs given cost-benefit analysis.c. A product or service costs that does not include any non-value added overhead.d. A costing system that traces all costs directly to individual products or services. 5. The cost generated by the cost management system are used toa. Assess product / service profitability.b. Establish price for products with significant competition.c. Determine underlying reasons for variations from standards.d. All statements in the choices.
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