Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion. Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume. Manufacturing cost : Manufacturing cost is a cost of manufacturing products or goods. Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods. Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost. Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex. Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions 1. To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

Question

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Answer 1

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

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Students have asked these similar questions

Given answer Financial accounting

Income from operations for Division X is $300,000, total service department charges are $500,000, and operating expenses are $3,200,000. What are the revenues for Division X? a. $800,000 b. $3,500,000 c. $4,000,000 d. $3,200,000

What is the value of the shareholders' equity account for this firm on these financial accounting question?

Answer 2

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Expert Solution & Answer

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Answer 3

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Expert Solution & Answer

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Answer 4

Question

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Expert Solution & Answer

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Answer 5

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

To determine

2.

To Decide: Nautical should accept special sales orders or not.

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Answer 6

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

Answer 7

Chapter 25, Problem P25.27BPGB

To determine

Concept Introduction:

Variable Cost: Variable cost is a cost that changes when the volume of production changes, in the same direction and in the same proportion.

Fixed Cost: Fixed cost is a cost that remains constant, irrespective of changes in production volume.

Manufacturing cost: Manufacturing cost is a cost of manufacturing products or goods.

Selling cost: Selling cost is a cost that incurs to the market and sale of product or goods.

Administrative cost: The costs which are not classified under manufacturing or selling costs fall under administrative cost.

Relevant Cost: Relevant cost is the incremental and inevitable cost that is incurred when making a specific business decision. Relevant cost is useful in eliminating unrequited data that makes the decision making process complex.

Irrelevant Cost: Irrelevant cost is the cost that will remain unchanged as a result of specific business decisions

1.

To Identify: The each cost in the income statement as relevant or irrelevant to Nautical’s decision.

Answer 8

To determine

2.

To Decide: Nautical should accept special sales orders or not.

Answer 9

To determine

2.

To Decide: Nautical should accept special sales orders or not.

Answer 10

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Answer 11

To determine

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 25 - Prob. 1QC Ch. 25 - Prob. 2QC Ch. 25 - Which of the following costs are irrelevant to...Ch. 25 - Prob. 4QC Ch. 25 - Prob. 5QC Ch. 25 - 6. When companies are price-setters, their...Ch. 25 - Prob. 7QC Ch. 25 - Prob. 8QC Ch. 25 - Prob. 9QC Ch. 25 - Prob. 10QC

2. To Decide: Nautical should accept special sales orders or not.

3. To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.

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Chapter 25 Solutions

2.

To Decide: Nautical should accept special sales orders or not.

3.

To Identify: Nautical should consider long-term factors in deciding whether to accept the special sales order.