Required: 1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, o semivariable. 2. Calculate the total cost for next February when 2,100 tons are expected to be extracted. 3-a. Is hauling 1,800 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? 3-b. If the company goal is 1,800 tons, what is the maximum number of tons at which cost-effectiveness can be achieved? 4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, whic the two types of fixed costs should management try to cut?

Required: 1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, o semivariable. 2. Calculate the total cost for next February when 2,100 tons are expected to be extracted. 3-a. Is hauling 1,800 tons with respect to Antioch's trucking/hauling cost behavior cost-effective? 3-b. If the company goal is 1,800 tons, what is the maximum number of tons at which cost-effectiveness can be achieved? 4. Distinguish between committed and discretionary fixed costs. If Antioch were to experience severe economic difficulties, whic the two types of fixed costs should management try to cut?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 79.1C

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Dd.40.
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