Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost. Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost. In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

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Answer 1

Question

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

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Answer 2

Question

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

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Answer 3

Question

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

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Answer 4

Question

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

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Answer 5

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

Answer 6

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

Answer 7

Chapter 21, Problem 17DQ

To determine

Fixed costs are the cost which remains constant in totality at each level of activity. It do not change with the change in output level. It is an unavoidable cost.

Variable cost is the cost which changes in direct proportion to changes in level of activity. It remains constant per unit of output and increase at same rate as increase in output level. It is an avoidable cost.

In the question, we have given the data of two similar companies related to sales, fixed and variable cost and profitability. If sales will double then we have to calculate that which company's profitability will increase.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 21 - Cost behavior identification C1 Listed here are...Ch. 21 - QS 21-2 Cost behavior identification c1 ...Ch. 21 - QS 21-3 Cost behavior estimation—high-low method...Ch. 21 - Prob. 4QS Ch. 21 - Prob. 5QS Ch. 21 - Prob. 6QS Ch. 21 - Prob. 7QS Ch. 21 - Prob. 8QS Ch. 21 - Prob. 9QS Ch. 21 - Prob. 10QS

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Chapter 21 Solutions