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(a)
Fixed Costs: The fixed costs refer to those costs, which do remain constant with respect to the output. The fixed costs do not vary with the output. The expenses like the
Variable Costs: The variable costs refer to the costs which vary with respect to the output. The variable costs include the commission, the freight charges, and the direct materials.
Total cost: The total cost is the sum of variable cost and fixed cost. It is the total of all the costs that are incurred in order to run a business.
To determine: The variable and fixed cost elements by high-low method.
(b)
The total cost if the company produces 9,200 units.
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Chapter 22 Solutions
Accounting Principles 12E WileyPLUS with Loose-Leaf Print Companion with WileyPLUS Leanring Space Card Set
- 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
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