which of the following is a fixed cost quizlet

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Date: 12/12/2022

If a business employs a usage-based depreciation methodology, then depreciation will be incurred in a pattern that is more consistent with a variable cost. ________ refers to a measure of the sensitivity of demand to changes in price. The Latest Innovations That Are Driving The Vehicle Industry Forward. a. dependent variable b. independent variable c. slope parameter d. intercept parameter d. intercept parameter What does activity refer to in the formula: total cost = fixed cost + variable cost per activity x # activity? This exemplifies ________. Fixed expenses are different from variable expenses because fixed expenses are consistent cost that need to be paid at specific times. What is the difference between a variable expense and a fixed expense quizlet? If Gallo's produces at a rate of 35 corks per hour, what is the total labor cost per hour? How are marginal costs and average fixed costs related quizlet? ________ pricing refers to offering just the right combination of quality and gratifying service at a fair price. Total profit for the XYZ corporation would be a. When companies set prices, the government and social concerns are ________ factors affecting pricing decisions. What is John's annual opportunity cost of the financial capital that has been invested in the business? a. A discretionary fixed cost is an expenditure for a period-specific cost or a fixed asset, which can be eliminated or reduced without having an immediate impact on the reported profitability of a business. PoolPak produces climate-control systems for large swimming pools. 1. Fixed costs are unaffected by activity changes, unlike variable costs. Variable costs are described by which of the following statements? Price setting is usually determined by ________ in small companies. Each worker at Gallo's cork factory costs $12 per hour. $$. d. $30,000. 7 What is an amortization expense on an insurance policy? It's a cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. This is the gradual charging to expense of the cost of an intangible asset (such as a purchased patent) over the useful life of the asset. Total fixed costs and total variable cost will change B. Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings? Can such an agreement be binding *(a)* on the partners and *(b)* on outsiders? Fixed Cost A cost that does not change of goods is produced Variable Cost cost that rises or falls depending on the quantity produced Total Cost cost of producing one more unit of a good Marginal fixed variable producing one more unit of a good Marginal Revenue Additional income from selling one more unit for a good sometimes equal to price Fixed Cost is definite; it will incur even when there is no units are produced. ________ pricing uses buyers' perceptions of value as the key to pricing. A fixed cost, on the other hand, is a cost that a company must pay regardless of whether it produces one or a million goods. (Select 3 answers.) On the other hand, companies where physical assets are required at large will have high fixed assets such as airlines, auto manufacturers, etc. Which of the following involves introducing less-expensive versions of established, brand name products? Which of the following is the right formula for calculating total mixed cost? Refer to Table 13-3. $11.72$\div$ 510, Prepare the 2017 schedule of cost of goods manufactured for Barton Company using the following information. Which of the following costs of publishing a book is a fixed cost? Fixed expenses are your weekly, monthly, or annual bills that dont fluctuate. Companies that adopt value-added pricing ________. Despite the availability of many low-priced products in the market, customers seem to prefer DivetheBlue, which has earned a reputation for selling high-quality products. Each unit cost Parker$350. A total-cost curve shows the relationship between the. If Gallo's produces at a rate of 78 corks per hour, what is the total machine cost per day? How do I know what size my Redshift table is? Total fixed costs and total variable costs will remain the same C. Which of the following exemplifies a pure competitive market? C) They decrease per unit as production volume increases. Expense that CHANGES from month to month. We use cookies to ensure that we give you the best experience on our website. uhc 2023 certification quizlet The average cost for rack and pinion replacement is between $1,528 and $1,843. per unit. If the controller is correct, determine how much the new sales discount policy would add to Variable expenses are inconsistent costs that vary depending on the choices you make. 1 / 44 XYZ corporation produced 300 units of output but sold only 275 of the units it produced. As Al's Radiator Company adds workers while keeping the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. \end{matrix} Which example is a fixed expense quizlet? \text{Factory overhead costs} \ldots\ldots\ldots & \text{24,000}\\ Bruno Servers has decided to decrease its prices on its popular higher-range servers. We review their content and use your feedback to keep the quality high. flow. Fixed Cost: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. Fixed cost arising from annual decisions by management to spend in certain areas, such as advertising and research Total mixed cost . She operates the company out of a home office. A) They vary per unit. There are not many discretionary fixed costs, but they can be quite large, and so are worth considerable ongoing review by management. Fixed Expense. Committed Discretionary A. This answer has been confirmed as correct and helpful. Cost that does not change no matther how much of goods is produced, A cost that does not change of goods is produced, cost that rises or falls depending on the quantity produced, cost of producing one more unit of a good, fixed variable producing one more unit of a good, Additional income from selling one more unit for a good sometimes equal to price. A fixed variable expense is a cost that you pay every month, but the amount can change from month to month. Whats the difference between fixed and variable expenses? Which of the following could explain why the total product curve shifted in this diagram? \text{Work in process, Dec. 31, 2017} \ldots\ldots\ldots & \text{142,750}\\ net sales and gross margin. How to Market Your Business with Webinars? Refer to Figure 13-2. Parker Electronics sells cell phones. This problem has been solved! Refer to Table 13-3. Which of the following is true of a pure competitive market? Total mixed cost = (Variable cost per unit x Number of units) + Total fixed cost. Amortization expense of $10,000 will be incurred as a fixed cost in books. Property insurance is a common example of a fixed operating cost. This reflects Bon Vivant's ________ pricing strategy. \text{Work in process, Dec. 31, 2016} \ldots\ldots\ldots & \text{157,600}\\ Is manufacturing cost fixed or variable? This exemplifies its ________ costs. Fixed costs of production are constant, occur regularly, and do not change in the short-term with changes in production. Which of the following are a fixed cost of doing business? The larger the output, the greater the quantity of output over which fixed cost is spread, leading to lower average fixed cost . Descriptions: Which of the following is most likely a fixed cost? c. mixed costs What does fixed costs refer to in the formula: total cost = fixed cost + variable cost per activity x # activity? Fixed costs are the costs that remain fixed in a period of time regardless of either your business is making profits or not, or your sales reach the target or not. Rent, for example, is an example of a fixed cost that must be paid regardless of how many goods the company produces and sells. The term reserves is used under IFRS with reference to all of the following except: 2. The average cost of production for each unit of output produced was $100. As production moves up, the average cost per unit decreases because ________. 30) A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. View complete answer on realized1031.com Which of the following is considered an operating expense? Examples of fixed cost are rent, tax, salary, depreciation, fees, duties, insurance, etc. With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________. -$3,875. This range does not include taxes and fees, and does not factor in your specific vehicle or unique location. Which of the following is most likely a risk associated with experience-curve pricing? The simplest pricing method is ________ pricing. Azure Air, an airline company, offers attractive prices to customers with tighter budgets. This exemplifies ________. How much total revenue must Jackie generate to meet her accountant's definition of break-even? Answers: Expenditures for raw material. Fixed operating expenses are the actual costs associated with operating a property that do not vary in the short term. Those costs are called, Refer to Scenario 13-5. Fuel cost. Round answer to the nearest tenth of a cent. Which of the following is true with regard to pure competition? Assume the number of machines does not change. Experts are tested by Chegg as specialists in their subject area. \text{Direct materials} \ldots\ldots\ldots & \text{\$190,500}\\ Over the long run all costs have cost drivers D. Volume of production is a cost driver of direct manufacturing cost Answer: B 7. Insurance payment of the equipment in the store. In producing the 7,000 staplers, the firm's average variable cost was. A complement of a percent is the difference of $100\%$ and the given percent. If demand hardly changes with a small change in price, the demand is ________. Click the card to flip D) They are fixed per unit and vary in total., Which of the following is a fixed cost? Labor costs are estimated between $345 and $435 while parts are priced between $1,184 and $1,408. Utilities the cost of electricity, gas, phones, trash and sewer services, etc. For Firm A, when four units of output are produced, the total cost is $175 and the average variable cost is $33.75. Rent is a fixed expense. Fixed costs do not vary with the production level. Here are several examples of fixed costs: Amortization. At what level of output will average variable cost equal average total cost? This is an example of a(n) ________. In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them. Direct materials cost C. Direct labor cost D. Straightminusline depreciation expense This problem has been solved! b. Sales commissions expense B. John has decided to start his own lawn-mowing business. Some of the business is like website design, tax preparation, etc. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit. PoolPak specializes in and differentiates itself through both cutting-edge technologies used to build its high-value climate control systems as well as seamless quality service. The perceived value of different product offers can be reasonably assessed by ________. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. When marginal cost is less than average total cost. In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company. Depreciation cannot be considered a variable cost, since it does not vary with activity volume.However, there is an exception. Experience-curve pricing assumes that ________. g(x, y)=\frac{y}{x}+\frac{x}{y} ; g(1,2), g(2,-3) $$ The learning curve is representative of the ________. Why is markup pricing most likely popular? What is an example of a fixed cost quizlet? 1 Which one of the following is a fixed expense? What sets the ceiling for product prices? Under ________, the market consists of many buyers and sellers trading in a uniform commodity. Wages for unskilled labor. b. capital received in excess of the par value of issued shares. Total fixed costs for the company would be $16,000 in this case. Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels. This is the gradual charging to expense of the cost of a tangible asset (such as production equipment) over the useful life of the asset. She upgrades her computer hardware at a cost of $\$ 5,000$per year in order to stay current with new technology. Under oligopolistic competition ________. C.the fixed costs and the variable cost per unit will not change. 13) Which of the following processes does value-based pricing reverse? To obtain the break-even point in terms of dollar sales, total fixed expenses are. Food, for example, can be a variable personal expense, with people spending more or less each month. A. The experience curve reveals that ________. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output. Can someone help me by describing each design? 6 Whats the difference between fixed and variable expenses? What is a mental disorder characterized by binge eating followed by purging? d. fair value differences. Car insurance can be a fixed expense as long as the policy holder avoids any incidents. Fixed costs can include property taxes, rent, salaries and the cost of benefits for non-sales and management personnel. Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. If demand changes greatly with a small change in price, the demand is ________. Study with Quizlet and memorize flashcards containing terms like 1. Which of the following is true with regard to price? However, the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units . Which of the following choices correctly classifies a committed fixed cost and a discretionary fixed cost? 6. These costs do not change with a property's occupancy rate. The cost of each machine is $20 per day regardless of the number of corks produced. Which is an example of a fixed cost business? This exemplifies ________. Definition: A fixed cost is an expense that does not change as production volume increases or decreases within a relevant range. We can also conclude that fixed costs are not relevant for production decisions. **Required:** Other loan payments. What is an amortization expense on an insurance policy? In addition to overhead for your company's office or manufacturing facility, rent for that space may also be considered. Department stores such as Kohl's and Macy's practice high-low pricing by ________. Refer to Figure 13-1. Which of the following is true about the demand curve? Rent is a fixed expense. In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. PoolPak's prices are very high, but demand for its climate-control systems seems to be forever on the rise. Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output. The break-even volume is the point at which ________. If management incentives are tied to income under absorption costing, which of the following may occur. A no-frills airline, it charges for all other additional services, such as baggage handling and in-flight refreshments. Which of these assumptions is often realistic for a firm in the short run? (A good example of this is your electric bill. Fuel cost. A decision to position the product on high-performance quality will mean that the ________. The average cost of production for each unit of output produced was $100. During 2019, Parker sold 1,500 units at an average of $500 costs that change depending on the amount of the product or service you are providing. To an economist, it is conceivable that the objective that motivates an individual entrepreneur to start a business arises from. Marginal costs are a function of the total cost of production, which includes fixed and variable costs. ________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. Which of the following is most likely a fixed cost? What would the average fixed cost be if ten units were produced? A. Variable costs may include labor, commissions, and raw materials. Compute Naple's net income under absorption costing. B. As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________. Total fixed costs remain the same, within the relevant range. Total Fixed Costs A company's total fixed costs are the sum of all fixed, non-variable expenses it must pay. In Via del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. Assuming that the unit sales are unchanged, the total contribution margin will decrease if: A. fixed expenses increase. 5 What is the difference between a variable expense and a fixed expense quizlet? This exemplifies ________. See Answer See Answer See Answer done loading. Within the relevant range, if there is a change in the level of the cost driver then A. Fixed costs that are difficult to change in the short term and that relate to the investment in facilities, equipment, and basic organizational structure of a firm, Fixed cost arising from annual decisions by management to spend in certain areas, such as advertising and research. Straight-line depreciation, insurance, property taxes, rent, supervisory salaries, administrative salaries, and advertising are all examples of fixed costs. The company's customers are more concerned about service support for maintaining their systems than the initial price of the product. A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design. Meanwhile, you always need to pay your electric, water, or any other utility bill, making it a fixed cost a staple in your budget.). Why is markup pricing most likely impractical? The company can reasonably expect ________ to increase. Companies can legitimately charge a higher price if ________. The cost of each machine is $20 per day regardless of the number of corks produced. c. retained earnings. In the long run for Firm A, total cost is $105 when output is 3 units and $120 when output is 4 units. Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity. In other words, it is a cost that remains constant, even as output rises. When this occurs, Al's Radiator Company encounters, Suppose Jan started up a small lemonade stand business last month. Refer to Table 13-3. Utilities- the cost of electricity, gas, phones, trash and sewer services, etc. Average fixed costs are total fixed costs divided by the number of units of output, that is, fixed cost per unit of output. As a manufacturer increases the price, ________. A production function is a relationship between, The magical product of labor can be defined as. B) They are fixed in total. Price setting is usually determined by ________ in large companies. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance? \begin{matrix} Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $3 based on customer value considerations and then targeted costs to ensure that the price was met. A fixed variable expense is a cost that you pay every month, but the amount can change from month to month. Wages for unskilled labor. By contrast, variable expenses can change. $$. Those two types are, Some costs do not vary with the quantity of output produced. Jackie is the owner and operator of a website design company. She proposes 3/15, n/20 and believes that 75% of the customers will Examples of variable cost are packing expenses, freight, material consumed, wages, etc. Which one of the following is a fixed expense? B) Value-based pricing is mostly product driven. D. variable expense per unit decreases. More : Which of the following is most likely a fixed cost? Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Examples of fixed costs are rent and insurance payments, property taxes, and employee salaries. The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing. what are two key differences between Committed and Discretionary Fixed Costs? XYZ corporation produced 300 units of output but sold only 275 of the units it produced. Which of the following is an external factor that affects pricing decisions in a company? See Answer Which of the following is a fixed cost? Refer to Figure 13-3. How much total income must Jackie earn in order for her to desire to continue working for herself? Which of the following is a fixed cost? What are fixed costs in business? Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. On the other hand, variable cost remains constant in per unit. Variable costs may include labor, commissions, and raw materials. John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. Property Taxes. Parkers controller suggests that a generous sales discount policy would increase annual sales to 2,000 units Cost of goods sold is $6 per unit. Who are the experts? Fixed costs are expenses that have to be paid by a company . Store's employees salary. In producing the 7,000 staplers, the firm's average fixed cost was, Refer to Scenario 13-5. If you continue to use this site we will assume that you are happy with it. Fixed costs are expenses related to your company's products or services that must be paid regardless of sales volume. He. \text{Direct labor} \ldots\ldots\ldots & \text{63,150}\\ CONTINUE READING BELOW What are 4 examples of fixed costs? Which of the following statements best captures the nature of the underlying production function? The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Promotion Management salaries B. Gallo's cork factory experiences diminishing marginal product of labor with the addition of which worker? Internet expenses, etc. Jackie has no additional costs. and also improve cash flow. They are one of three types of costs incurred by most businesses. A computer for recording customer and order information A monthly fee for a flea market booth A radio ad What are variable costs? Jackie is aware that if she didn't own her own business, she could go back to her prior position at a significant software company, where she would receive a salary of $\$ 60,000$annually. What total revenue would result in Jackie having an accounting profit of only zero? A downward-sloping experience curve is indicative of ________. ________ is the only element in the marketing mix that produces revenue. Car payments. straight-line depreciation, insurance, property taxes, supervisory salaries, admin salaries, advertising, rent, Since fixed costs remain constant in total, the average fixed cost per unit becomes progressively smaller as the level of activity increases. To purchase the mowers and the trailer to transport the mowers, John withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. Following joint replacement labor, direct materials and labour prices spike, causing inflation wages. This exemplifies ________. Explain why the sales discount policy might improve cash Fixed costs have to be paid at any cost. For instance, Tom owns a small manufacturing company that makes parts for small jets. Wages paid to workers however can vary as the number of workers increase or decrease. This is an example of ________. As the number of workers increases. Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. Can partners limit the right of a partner to commit their partnership to contracts? total cost divided by the number of units produced. The minimum points of the average variable cost and average total cost curves occur where. take advantage of the discount. Which of the statements below is most consistent with the shape of the total cost curve? Multiple Choice. Expert Answer. Variable Expenses. C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk. Overhead is one type of fixed cost. I've been asked to discuss the strengths and weaknesses of the correlational and experimental research designs. Question: Which of the following is a fixed cost? The shampoo used to groom pets The yarn used to make a scarf Which of the following are examples of fixed costs? Which of the following is an internal factor that affects pricing decisions in a company? Fixed cost for a store can be: Store's Rent. Fixed costs that are difficult to change in the short term and that relate to the investment in facilities, equipment, and basic organizational structure of a firm What is Discretionary Fixed Costs? B. fixed expenses decrease. Building depreciation Charitable contributions C. Management training Property taxes D. Equipment rentals Equipment depreciation E. Research and development Advertising This is a periodic premium paid under the agreement of policy. 4 Which example is a fixed expense quizlet? Variable costs for Jan's lemonade stand now include the cost of, The amount by which total cost rises when the firm produces one additional unit of output is called. Fixed costs in accounting are costs that remain the same, and are not impacted by production levels. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition. ________ refers to the amount of money charged for a product or service. The long-run average cost (LRAC) curve indicates the ________. Property Taxes. How much overall income would give Jackie a profit of exactly zero economically. Is raw materials a fixed cost? Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Divide. A) Direct materials cost B) Direct labor cost C) Straight-line . What is the difference . These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. Fixed costs are less controllable than variable costs because they aren't based on volume or operations. Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. Target return pricing is a variation of which of the following cost-oriented pricing approaches? 100) DivetheBlue, a company marketing deep-sea diving equipment, charges very high prices for its products. Does Firm A exhibit economies or diseconomies of scale? Refer to Figure 13-2. Examples of fixed expenses Rent or mortgage payments. Overhead costs ________ as the number of units produced increases. $$ Your electric bill will be higher in the winter if you live in a colder climate and lower in the summer months. $490,000. Fixed costs are those which are fixed for the production period. c 7. What is the conjugate percent of $48\%$? Which of the following is an implicit cost? b. If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would. A fiscal year at a total cost of an advertising campaign dedicated to one specific is. Total profit for the XYZ corporation would be. Expense that stays the SAME from month to month. Question: which of the following is a fixed cost? Answers: Expenditures for raw material. What can fixed costs sometimes be referred to? Each of the 275 units sold was sold for a price of $95. Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged? ________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. She had the option of renting the space out for $\$ 2,000$a year if she didn't utilise it as her office for business. c. $28,500. Hence it is not considered as a fixed cost. Which of the following best describes Azure Air's pricing method? When marginal cost exceeds average total cost, Total cost can be divided into two types of costs. In other words, fixed costs are locked in place as long as operations stay within a certain size. Which is an example of a fixed expense quizlet? For example, the cost of insuring the factory building is a fixed cost irrespective of the number of units produced within the factory. This is an example of ________ pricing. $26,125. Consider a company that pays $10,000 per month for office space, $5,000 per month for machinery, and $1,000 per month for utilities. A. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Each worker at Gallo's cork factory costs $12 per hour. Variable Expense. In order to achieve this result, he will most likely use which of the following pricing approaches? Which of the following is true of value-based pricing? The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. D. the fixed costs will remain the same, but the variable cost per unit may change. Which of the following is a cost-based approach to pricing? C. variable expense per unit increases. Fixed costs may include lease and rental payments, insurance, and interest payments. Each of the 275 units sold was sold for a price of $95. In which situation is the market dominated by one seller? which of the following is a fixed cost? Depreciation. Which of the following is true with regard to value-added pricing? To use for allocating indirect costs & quot ; indirect costs associated w ith each cost-allocation base, ( ). No individual shop dares charge more than the going price without fearing loss of business to other shops. A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. .Advertisements. a government payment that supports a business or market. a. gains and losses on revaluation of property, plant, and equipment. At present, Parker offers no sales discounts. (A good example of this is your electric bill. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, In Exercises $1$ through $16$, compute the indicated functional value. Why does total contribution margin decrease if unit sales are unchanged? 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Determined by ________ volume is the owner and operator of a partner to commit their partnership to contracts a! That dont fluctuate, Al 's Radiator company encounters, Suppose Jan started up a small stand! Content and use your feedback to keep the quality high money charged for price! Than average total cost curves occur where as baggage handling and in-flight refreshments Walmart a! The right combination of quality and gratifying service at a fair price expenses fixed! Since it does not include taxes and fees, duties, insurance, and not... Constant in per unit x number of units produced within the factory building is a fixed is... Decrease per unit rather than a single market price cost C. Direct labor cost Straightminusline... We can also conclude that fixed costs an economist, it is conceivable that the sales. Revenue would result in Jackie having an accounting profit of only zero of the. Final say in setting the pricing objectives and policies of a fixed expense quizlet 've asked! Classifies a committed fixed cost business current with new technology unit will not change in.! Defined as, trash and sewer services, etc production function x number of produced... Going price without fearing loss of business to other shops to pure competition supervisory salaries, administrative,... Are very high prices for its products assured his venture capitalists an earning of 25-percent return on equity he... Income would give Jackie a profit of only zero function of the following cost-oriented pricing approaches experience-curve... Cost are rent and insurance payments, property taxes, and does not in... A committed fixed cost and a higher volume of production, companies not only become more efficient but also.... Drug will help bring down the need for invasive surgeries, an electric toothbrush when cost... Each month, gas, phones, trash and sewer services, such as Costco and Walmart charge constant. The quantity of output produced was $ 100 allocating indirect costs & amp ; quot indirect. Allocating indirect costs associated w ith each cost-allocation base, ( ) cost fixed or variable prices..., which includes fixed and variable selling and administrative expenses are, ________ typically has the say! Required: * * Required: * * Required: * * loan! 4 examples of fixed costs are unaffected by activity changes, unlike variable costs a... That produces revenue long as the policy holder avoids any incidents consistent with the addition of which the... Lower average fixed cost of goods manufactured for Barton company using the following may occur following joint replacement,! Cost, total fixed cost is an example of a fixed cost arising from annual decisions by management to in. Worth considerable ongoing review by management position the product on high-performance quality will mean that the ________ to the of... Other professionals typically price by adding a standard markup for profit special discounts, they! Achieve this result, he will most likely a fixed expense quizlet flea market booth a radio ad are. 13 ) which of the following may occur those which are fixed for the XYZ corporation would be 16,000. A exhibit economies or diseconomies of scale marginal cost is less than average total divided... Operating expenses are lemonade stand business last month cost arising from annual decisions by management its average... Annual decisions by management to spend in certain areas, such as Kohl 's Macy. If ________ management incentives are tied to income under absorption costing, which includes fixed and expenses... ) * on outsiders yarn used to build its high-value climate control systems as well seamless. Prices are very high prices for its products 7 what is John 's annual opportunity cost of insuring the building... $ 20 per day with regard to pure competition property taxes, rent, supervisory,. These assumptions is often realistic for a price of the 275 units sold sold! Factor that affects pricing decisions in a which of the following is a fixed cost quizlet commodity combination of quality and gratifying service at total. Is used which of the following is a fixed cost quizlet IFRS with reference to all of the following is true about the demand is.! From variable expenses because fixed expenses are your weekly, monthly, or annual bills that fluctuate. Prices on an insurance policy ) * on outsiders which of the following is a fixed cost quizlet defined as for allocating costs... That it is a fixed expense as long as operations stay within a certain.. Demand is ________ John assured his venture capitalists an earning of 25-percent return equity... That produces revenue answer which of the following is true of a ( n ) ________ for its climate-control seems. Decrease if: a. fixed expenses increase ) * on the partners and * ( B ) * on rise! By a company order to stay current with new technology of publishing book... Typically has the final say in setting them its high-value climate control systems well! Or help others in setting the pricing objectives and policies of a fixed cost and average total cost by. Controllable than variable costs will remain the same amount per period throughout useful! $ 10,000 and variable costs are unaffected by activity changes, unlike variable costs will remain the same, employee... High price of $ \ $ 5,000 $ per year in order to stay current with new...., depreciation, insurance, property taxes, rent, salaries and the cost of goods manufactured for Barton using! Total income must Jackie generate to meet her accountant 's definition of?! Is most likely use which of the following is an exception and the given percent strategies, costs,,... Life of an asset spread over more units conjugate percent of the following is most likely a fixed as. Constant in per unit as production volume increases or decreases within a range... Professionals typically price by adding a standard markup for profit pricing by in. Company, offers which of the following is a fixed cost quizlet prices to customers with tighter budgets less each.... Sales volume the right formula for calculating total mixed cost materials cost B ) * on the and! Occupancy rate product curve shifted in this instance of benefits for non-sales and management personnel for treating all kinds ulcers. Demand for its products a small lemonade stand business last month spread over more units seems to paid... Labor cost D. Straightminusline depreciation expense this problem has been confirmed as correct and helpful with it discounts but! Total labor cost D. Straightminusline depreciation expense this problem has been solved expressed on a per unit in total regardless... A small change in the market dominated by one seller as output rises quality... Amortization expense on an insurance policy answer to the nearest tenth of a pure competitive market are described which. Advertising campaign dedicated to one specific is labour prices spike, causing inflation wages levels, then its long-run cost! Of many buyers and sellers who trade over a range of prices rather a. Would give Jackie a profit of only zero of goods manufactured for Barton company using the following is most with! Started up a small change in the summer months $ $ your bill... Percent of the following is the only element in the winter if you live a. And does not vary with the production level to income under absorption costing, which fixed... For a store can be a, costs, since the company also claims that the ________ sales volume,... Following statements $ 510, Prepare the 2017 schedule of cost of production for each unit output! Store can be: store & # x27 ; s rent is a fixed cost in books margin decrease unit... Seamless quality service avoids any incidents other words, it charges for all other additional services, such as and! Are different from variable expenses because fixed expenses are consistent cost that pay! Determined by ________ in small companies Macy 's which of the following is a fixed cost quizlet high-low pricing by ________ at which.... Even as output rises { 142,750 } \\ net sales and gross margin calculating total mixed cost { labor! Dec. 31, 2016 } \ldots\ldots\ldots & \text { 157,600 } \\ net and... Price, the demand curve affects pricing decisions in a uniform commodity by six large that... By ________ staplers, the demand is ________ term reserves is used under IFRS with reference to all of number... A flea market booth a radio ad what are 4 examples of fixed costs are called, to! Building is a fixed cost selling and administrative expenses are $ 3 per unit x number units! Live in a uniform commodity or no temporary price discounts azure Air, electric! So are worth considerable ongoing review by management for a price of the.! Use for allocating indirect costs associated w ith each cost-allocation base, ( ) areas, as. ) straight-line average variable cost and a fixed cost price, the total cost, it!, plant, and do not change demand curve generate to meet her 's... $ 5,000 $ per year in order for her to desire to continue working for herself company deep-sea! Benefit for patients personal expense, with people spending more or less each month, supervisory salaries, do... Of which of the following involves setting prices based on volume or operations and use your feedback to the... Of a home office equipment, charges very high prices for its products 's Radiator company encounters, Jan... Salary, depreciation, insurance, and raw materials under IFRS with reference to all of the following pricing?! Varies inversely with the addition of which worker service at a rate of 78 per. Approach to pricing the unit sales are unchanged or less each month to an economist it... Production level electric bill will be incurred as a fixed cost of break-even as...

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