The opportunity cost of making a component pa there is no alternative use is: the variable manufacturing cost of the component. the total manufacturing cost of the component. the fixed manufacturing cost of the component. zero.

Q: In describing the cost formula equation, Y = a +bX, which of the following is correct: Multiple…

A: Lets understand the basics.High low method as the name suggest consider highest level of activity…

Q: Given the following, the only item that will generally be included in relevant cost analysis is:…

A: Introduction:   The phrase "relevant cost" in managerial accounting refers to avoidable costs that…

Q: What is the definition of a variable cost? Multiple Choice The total cost (materials, labor, and…

A: The costs incurred for the production are classified as fixed and variable components. The variable…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Management Accounting) If fixed production costs are not allocated to manufactured products, this…

A: SOLUTION FIXED COST INCLUDES THE RENT OR MORTGAGE PAYMENT YOU PAY FOR YOUR FACTORY AND OFFICE…

Q: 3. Which of the following is correct regarding a relevant range? a Total variable costs will not…

A: A Relevant Range is the Range of Activity above which the Variable Cost Per Unit and The Total Fixed…

Q: The total cost of a cost object can only include the direct costs that are directly traced to that…

A: The total cost of a cost object includes both costs i.e costs that are directly traced and…

Q: One time purchase cost of hardware and software is Variable Cost Nonrecurring cost Indirect cost…

A: Hardware and Software are classified as Fixed Assets in the Balance sheet. Cost incurred in the…

Q: Which of the following about the residual switch cost is true? a. The residual switch cost decreases…

A: The residual switch cost refers to the performance decrement that remains even after accounting for…

Q: Which of the following statements about the use of relevant cost analysis in decision making is…

A: The Cost  play an important role in decision making because it is concern with all the decisions…

Q: Costs that change in total but not proportionately with changes in the activity level are mixed…

A: The costs incurred during the production process can be classified as fixed, variable and mixed…

Q: costs in which there are variable components and fixed components.....

A: Fixed costs will not change with the change in the level of production. Variable costs will change…

Q: Generally speaking, net operating income under variable and absorption costing will: Multiple Choice

A: The correct option is: be equal only when production and sales are equal.   Net Operating Income =…

Q: 1. Which of the following is a disadvantage of the Variable Costing method? A. The data available…

A: A cost accounting technique known as "variable costing" treats fixed manufacturing costs as period…

Q: The controller of Sheridan Industries has collected the following monthly expense data for use in…

A: The high-low method is a cost analysis technique that calculates the variable and fixed components…

Q: Which of the

A: A prime cost is the total direct costs of production, including raw materials and labor.. Indirect…

Q: Each incorrect answer cancels out each correcr one. Indicate which of the following statements are…

A: 1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Q: Which one of the following statements about fixed costs is correct? -The average fixed cost per…

A: Fixed cost is the cost that remains constant irrespective of the level of production. A company…

Q: The difference between absorption costing and variable costing is:   Question 5 options:   the…

A: Solution: The difference between absorption costing and variable costing is "the treatment of fixed…

Q: In calculating the incremental costs of making a component part in-house, the firm should consider…

A: When a firm considers making a component part in-house, it needs to consider the incremental costs,…

Q: The simplifying assumption that costs and volume vary in straight-line relationships makes the…

A: Cost Volume Profit Analysis is a method of costing that has an impact on the varying levels of cost…

Q: explain the difference between fixed costs and variable costs. The example may be of a company…

A: Fixed cost is independent on the volume of production of a company whereas variable cost is…

Q: Sales..... Variable expenses.. Contribution margin ..... Fixed expenses.. Operating income.. Total $…

A: The contribution margin of a company is the amount of money that is left over from sales after…