Describe how total variable costs and unit variable costs behave with changes in the level of activity.

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Answer 1

Textbook Question

Chapter 20, Problem 1DQ

Describe how total variable costs and unit variable costs behave with changes in the level of activity.

Expert Solution & Answer

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

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Problem No. 1 On January 1, 2025, Manuel Cruz and Sherimae Diasalo agreed to form a partnership that will manufacture and sell biscuits. The partnership agreement specified that Cruz is to invest cash of P1,000,000 and Diasalo is to contribute land and building to serve as the office and factory of the business. The following amounts are applicable to the property of Diasalo: Acquisition Cost Fair Market Value Land Building P1,000,000 500,000 P1,500,000 850,000 During the formation, it was found out that Cruz has accounts receivable amounting to P70,000 and the partners agreed that it will be assumed by the partnership. The name of the partnership will be Fita Pan. Required: 1. Prepare journal entry to record: a. The investment of Cruz to the partnership b. The investment of Diasalo to the partnershipood relay ni 000,219 2. Prepare the statement of financial position of the partnership as of January 1, 2025 Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February…

Answer 2

Textbook Question

Chapter 20, Problem 1DQ

Describe how total variable costs and unit variable costs behave with changes in the level of activity.

Expert Solution & Answer

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

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Answer 3

Textbook Question

Chapter 20, Problem 1DQ

Describe how total variable costs and unit variable costs behave with changes in the level of activity.

Expert Solution & Answer

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

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Answer 4

Textbook Question

Chapter 20, Problem 1DQ

Describe how total variable costs and unit variable costs behave with changes in the level of activity.

Expert Solution & Answer

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

Answer 8

Expert Solution & Answer

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity.

Answer 12

Explanation of Solution

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

Describe the behavior of the total variable costs and unit variable costs with changes in the level of activity as follows:

The total variable costs changes proportionately with respect to the changes in the level of activity. However, the unit variable costs remains constant irrespective to the changes in the level of activity.

Answer 13

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Describe how total variable costs and unit variable costs behave with changes in the level of activity.

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