Theta, Inc., a manufacturing company, has two major activities that drive the selling costs of the firm, namely commission paid to sales agents on the number of sales initiated and number of dispatches made. In the case of two explanatory variables, the linear equation is expanded to include the additional variable: Y = F + V1X1 + V2X2, where X1 = Number of sales initiated by representatives X2 = Number of dispatches made F = Fixed cost component Y = Total selling costs Which of the following is a dependent component in the equation above? a.Number of sales initiated by representatives b.Fixed cost component c.Number of dispatches made d.Total selling costs
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Y = F + V1X1 + V2X2, where
X1 = Number of sales initiated by representatives
X2 = Number of dispatches made
F = Fixed cost component
Y = Total selling costs
Which of the following is a dependent component in the equation above?
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