Identify and describe fixed, mixed, and variable cost behavior.

Question

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Answer 1

Question

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.

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Answer 2

Question

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.

Answer 6

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.

Answer 7

Chapter 2, Problem 1LO

To determine

Identify and describe fixed, mixed, and variable cost behavior.

Answer 8

Expert Solution & Answer

Explanation of Solution

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

Example:

Supervisor’s salary

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:

Direct material cost in relation to produced units.

Mixed cost has the properties of both variable and fixed cost. There are various methods to separate the fixed and variable cost from mixed costs like scatter diagram, least square regression, and high-low method.