1.
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.
Total Cost:
Total cost can be defined as the sum total of total fixed cost and total variable cost incurred by the firm to produce goods.
To prepare: The graph of fixed, variable and total costs for each training session versus the number of guests.
2.
To identify: Total cost and the cost per guest when 150 persons attend the next event.
3.
To identify: Total cost and the cost per guest when 200 persons attend the next event.
4.
To identify: The TBE charge to the customers for their services.
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Cost Accounting (15th Edition)
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