cost approach limitations the economic value

Q: Which one of the following statement best describe the unit variable cost: Select one: O a. Remains…

A: The Question has covered the concept of Variable Cost. The cost which is increases with level output…

Q: What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs –…

A: Break-even point is the point at which there is no loss or no profit. It is because the sales…

Q: 1. At the break-even point than a yot nisb a. Contribution margin = fixed costs b. Variable costs =…

A: Break even point resents the level of sales or revenue at which total costs (fixed costs and…

Q: AW-analysis of engineering economics problems may be preferred over other methods because:…

A: Annual worth is the equivalent annual value for the net present value calculated. Net present value…

Q: Fixed cost per unit ______ A

A: Under Marginal costing technique there are two types of costs . That is  a) Fixed costs Fixed cost…

Q: Ch. 5 Fixed Costs/Per Unit Pleaes explain the following concept/rule and give an example:  Why do…

A: Fixed cost is a cost which is constant in the short run, it is not related to any change in the…

Q: Which of the following best describes an "opportunity cost"?     Expected future costs that differ…

A: Introduction: Opportunity cost: Cost for the opportunity lost called opportunity cost.

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

Q: Which of the following statements is NOT true about costs per unit within the relevant range?…

A: Fixed cost is the cost that remains the same at all levels of output. Whereas, variable cost varies…

Q: Which of the following describes the behavior of the fixed cost per unit?

A: Fixed cost is the cost which is doesnt change gets effects with the change in production which means…

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: For a cost to be relevant to decision-making, it must be:

A: Relevant costs are critical in cost analysis and decision-making because they give a clear picture…

Q: Net realizable value is computed by: " ___________________ _________________ less estimated cost to…

A: SOLUTION- NET REALIZABLE VALUE - IT IS USED IN THE LOWER COST OR MARKET METHOD OF ACCOUNTING…

Q: Which of the following statements about a sunk cost is false? Question 11Answer a. It is relevant to…

A: In cost accounting, several type of cost classifications are there. These are like direct costs,…

Q: relevant cost analysis is: A. variable costs are always relevant. B. fixed costs are always…

A: When doing cost analysis for the company productions ,company is going to invest a lot of money so…

Q: Explain the effect of a decrease in the level of activity (cost driver) on: (i) total fixed cost…

A: Lets understand the basics. Fixed cost are cost which do not change with level of output. In other…

Q: iable costs in the context of cost-volume-profit (CPV) analysis?  b. Fixed costs in the context of…

A: Cost volume profit analysis is very important for the companies because it tells them that whether…

Q: What happens to average fixed cost as more products are made? a. Remains the same b. Increases c.…

A: Total fixed cost remains same at all level of output.

Q: A sunk cost can be described as which of the following?     A historical cost     Cannot be…

A: Sunk Cost: The sunk cost is the historical cost that already has been incurred previously, which is…

Q: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: 20. Which of the following statements is correct about variable costs?      a. Variable costs vary…

A: Introduction:- Variable costs are expenses that change when the quantity of a company's product or…

Q: C8Q7- Which one of the following statements is not correct? Total cost = total variable cost + total…

A: It is required to select a statement which is not correct. The statements are : 1. Total Cost= Total…

Q: Incremental costs are the ________ generated by a proposed alternative. A) additional revenues B)…

A: Incremental costs are the total additional costs incurred or the

Q: A cost that has previously been incurred and can not be recovered by choosing one alternative over…

A: Allocated cost: Expenses assigned to a particular department or project.Fixed cost: Expenses that…

Q: Henderson Farms reports the following results for the month of November: Sales (10,000 units)…

A: Income statement is a financial statement that shows profitability, total revenue and total expenses…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: The computation for the shutdown point is A. Avoidable fixed costs ÷ unit contribution margin B.…

A: Fixed costs are those that will not change with a change in the activity level. Variable costs are…

Q: When the activity level declines within the relevant range, what should happen with respect to the…

A: The company running its operations incurs both variable costs and also fixed costs. The variable…

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: Utility refers to the:   Question 55 options:   usefulness of a product   extent to which a…

A: Utility is important aspect for the customer.

Q: Within the relevant range: Select one: O A. variable cost per unit decreases as production…

A: Within the relevant range: (B) Fixed cost increases as the production decreases. With fewer goods…

Q: Variable costs are costs that:  a) Vary inversely proportional with changes in activity b) Remain…

A: Total variable costs increase with the increase in activity and decrease with the decrease in…

Q: What concept relates to the proportionate savings in costs gained when levels of production are…

A: Lets understand the meaning of all the terms given in the question. Accounting profit is a terms…

Q: Show how each of these costs will behave as the volume of activity decreases.…

A: The volume of activity directly impacts the variable cost because the variable cost changes directly…

Q: The break-even point is that level of activity where:

A:

Q: Which one of the following statement is not correct? O Both fixed and variable costs influence…

A: The incorrect statement is "opoortunity costs are only considered when resources are limited" This…

Q: :Total Fixed costs the level of activity none of the given is correct .a increases with .b does not…

A: The total cost of a product can be variable or fixed cost.