Fixed Cost: The fixed costs refer to the costs which do not change with the change in other factors in the business. It remains the same and does not vary with the output. The expenses like rent expenses, depreciation and taxes come under the fixed costs. Variable Cost : The variable cost refers to the cost which varies with the level of output in the business. The variable cost varies with the change in production. The examples of variable cost are the salaries and wages, the freight charges and the commission. Net Income : The net income refers to that part of income on which the profit of the company is calculated. The net income is the total earnings of the company and it is derived after subtracting all the expense and taxes from the income. To determine: The required sales in units to achieve the target.
Fixed Cost: The fixed costs refer to the costs which do not change with the change in other factors in the business. It remains the same and does not vary with the output. The expenses like rent expenses, depreciation and taxes come under the fixed costs. Variable Cost : The variable cost refers to the cost which varies with the level of output in the business. The variable cost varies with the change in production. The examples of variable cost are the salaries and wages, the freight charges and the commission. Net Income : The net income refers to that part of income on which the profit of the company is calculated. The net income is the total earnings of the company and it is derived after subtracting all the expense and taxes from the income. To determine: The required sales in units to achieve the target.
Solution Summary: The author explains fixed costs and variable costs, and calculates the required sales in units to achieve the target.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
Chapter 5, Problem 5.12BE
To determine
Fixed Cost: The fixed costs refer to the costs which do not change with the change in other factors in the business. It remains the same and does not vary with the output. The expenses like rent expenses, depreciation and taxes come under the fixed costs.
Variable Cost: The variable cost refers to the cost which varies with the level of output in the business. The variable cost varies with the change in production. The examples of variable cost are the salaries and wages, the freight charges and the commission.
Net Income: The net income refers to that part of income on which the profit of the company is calculated. The net income is the total earnings of the company and it is derived after subtracting all the expense and taxes from the income.
To determine: The required sales in units to achieve the target.
I am looking for the correct answer to this general accounting question with appropriate explanations.
A business had:
• Assets on Dec 31, Year 1: $820,000
• Liabilities on Dec 31, Year 1: $310,000
• Owner investments in Year 2: $45,000
Dividends paid in Year 2: $25,000
• Assets on Dec 31, Year 2: $870,000
• Liabilities on Dec 31, Year 2: $290,000
What is net income for Year 2?
WHICH OF THE FOLLOWING IS AN EXAMPLE OF A LABOR COST STANDARD?
A. $40 PER DIRECT LABOR HOUR
B. 50 SQUARE FEET PER UNIT
C. $0.95 PER SQUARE FOOT
D. 0.5 DIRECT LABOR HOURS PER UNIT
Chapter 5 Solutions
Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
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Cost-Volume-Profit (CVP) Analysis and Break-Even Analysis Step-by-Step, by Mike Werner; Author: Accounting Step by Step;https://www.youtube.com/watch?v=D0MOfse9OWk;License: Standard Youtube License