Fixed Cost: Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production. Variable Cost: Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost. Direct Cost: Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost. Indirect Cost: Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost. To classify: The costs items as direct costs or indirect costs.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Need answer the financial accounting question not use ai and chatgpt

What is the material price variance?

What is that overhead rate?

Answer 2

Question

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Answer 6

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

Answer 7

Chapter 2, Problem 2.20E

a.

To determine

Fixed Cost:

Fixed cost refers the cost which remains constant for particular time duration and there is no effect over it of the level of production.

Variable Cost:

Variable cost refers the cost which varies due to the change in the level of production. Higher production level refers higher the variable cost, and lower production level refers lower the variable cost.

Direct Cost:

Direct cost is the cost assigned to the cost object which is directly related to that cost object that is product or department. For example, material cost and labor cost.

Indirect Cost:

Indirect cost which is not directly related or assigned to the cost object that is product or department. For example, selling cost and administration cost.

To classify: The costs items as direct costs or indirect costs.

Answer 8

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Answer 9

b.

To determine

To classify: The costs items as variable costs or fixed costs.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 2 - Define cost object and give three examples.Ch. 2 - Define direct costs and indirect costs.Ch. 2 - Prob. 2.3Q Ch. 2 - Name three factors that will affect the...Ch. 2 - Define variable cost and fixed cost. Give an...Ch. 2 - What is a cost driver? Give one example.Ch. 2 - What is the relevant range? What role does the...Ch. 2 - Explain why unit costs must often be interpreted...Ch. 2 - Prob. 2.9Q Ch. 2 - What are three different types of inventory that...

To classify: The costs items as variable costs or fixed costs.

Want to see the full answer?

Chapter 2 Solutions