Concept explainers
Matching graphs with descriptions of cost and revenue behavior. (D. Green, adapted) Given here are a number of graphs.
The horizontal axis of each graph represents the units produced over the year, and the vertical axis represents total cost or revenues.
Indicate by number which graph best fits the situation or item described (a–h). Some graphs may be used more than once; some may not apply to any of the situations.
Required
- a. Direct material costs
- b. Supervisors’ salaries for one shift and two shifts
- c. A cost–volume–profit graph
- d. Mixed costs—for example, car rental fixed charge plus a rate per mile driven
- e.
Depreciation of plant, computed on a straight-line basis - f. Data supporting the use of a variable-cost rate, such as
manufacturing labor cost of $14 per unit produced - g. Incentive bonus plan that pays managers $0.10 for every unit produced above some level of production
- h. Interest expense on $2 million borrowed at a fixed rate of interest
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Chapter 10 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
Additional Business Textbook Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Fundamentals of Management (10th Edition)
Financial Accounting, Student Value Edition (5th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
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