1. Define fixed cost and variable cost and give an example of each.

Question

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Answer 1

Textbook Question

Chapter 11, Problem 1Q

1. Define fixed cost and variable cost and give an example of each.

Expert Solution & Answer

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

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Answer 2

Textbook Question

Chapter 11, Problem 1Q

1. Define fixed cost and variable cost and give an example of each.

Expert Solution & Answer

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

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Answer 3

Textbook Question

Chapter 11, Problem 1Q

1. Define fixed cost and variable cost and give an example of each.

Expert Solution & Answer

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

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Answer 4

Textbook Question

Chapter 11, Problem 1Q

1. Define fixed cost and variable cost and give an example of each.

Expert Solution & Answer

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

Answer 8

Expert Solution & Answer

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Explain fixed cost and variable cost with examples for each type of cost.

Answer 12

Explanation of Solution

Fixed cost: Fixed cost remains constant when volume of activity changes but per unit value will change inversely with change in volume of the activity.

Example of fixed cost: Supervisor’s salary.

Variable cost: Variable cost will change proportionately or directly with the change in the volume of the activity on the other hand per unit value will remain constant irrespective of the change in volume of activity.

Example of variable cost: Direct material cost in relation to produced units.

Answer 13

Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2Q Ch. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...

1. Define fixed cost and variable cost and give an example of each.

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