What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to be $4,000 a month and variable costs are expected to be $100 per client for each quarter? Expected number of clients for the year are: Jan - March April - June July - Sep Oct - Dec 110 140 150 100 A. S12,500 B. $24,500 C. $16, 500 D. $19,500

What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to be $4,000 a month and variable costs are expected to be $100 per client for each quarter? Expected number of clients for the year are: Jan - March April - June July - Sep Oct - Dec 110 140 150 100 A. S12,500 B. $24,500 C. $16, 500 D. $19,500

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to
be $4,000 a month and variable costs are expected to be $100 per client for each quarter? Expected
number of clients for the year are: Jan - March April - June July - Sep Oct - Dec 110 140 150 100 A. $12,500
B. $24, 500 C. $16, 500 D. $19,500

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