Concept explainers
Definition of costs:
Step-wise Cost: A Step-wise cost is a cost that does not change steadily with the changes in activity volume. It changes at some point of time. It remains fixed within some volume range and then changes suddenly after a certain point and again remains fixed within that next volume range and again suddenly changes after next volume range, and so on.
Variable Cost: A variable cost is the cost that changes at each level and volume of activity changes. It never remains fixed in totality. It increases as the level of output increases and vice versa. It remains fixed per unit of output.
Fixed Cost: A Fixed cost is a cost which remains same in totality with the change in activity level. It never remains fixed per unit.
Mixed Cost: Mixed cost is a cost which contains both fixed and variable cost components.
Curvilinear Cost: Curvilinear cost is a cost that increases at inconsistent rate i.e. irregular cost that increases at different different rates as the level of activity increases.
To determine:
1) Which graph represents above mentioned cost behavior
2) Identify which graph represents the most suitable cost behavior given in various instances mentioned in question.

Want to see the full answer?
Check out a sample textbook solution
Chapter 21 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
- Please provide correct solution and accounting questionarrow_forwardA balance sheet shows cash, $75,000; marketable securities, $110,000; receivables, $90,000; and $225,000 of inventories. Current liabilities are $200,000. The current ratio is 1.375 to 1. a. True b. Falsearrow_forwardWhat is the economic order quantity?arrow_forward
- PLEASE help do thi correctlyarrow_forwardDuring FY 2005 Tenfold Manufacturinghad total manufacturing bycosts are $438,000. Their cost of goods manufactured for the year was $548,000. The January 1, 2006 balance of the Work-in-Process Inventory is $39,000. Use this information to determine the dollar amount of the FY 2005 beginning Work-in-Process Inventory.arrow_forwardA7X, Inc., has an average collection period of 34 days. Its average daily investment in receivables is $95,000. What is the receivables turnover?arrow_forward
- ?!arrow_forwardHow much of the first monthly payment is interest expense?arrow_forwardNatalie Systems had assets of $310,000 and liabilities of $165,000 at the beginning of the year. During the year, revenues were $158,000 and expenses were $102,000. Also, during the year the business paid the owners a dividend of $6,000, and assets increased by $18,000. What were Natalie's total liabilities at the end of the year?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





