Why distinction between variable and fixed costs important

Assignment Help Managerial Accounting
Reference no: EM132692049

Problem 1: Why is the distinction between variable and fixed costs important when making break-even decisions and other costing/production/sales decisions? Be sure to address both total and per unit aspects of the two types of costs. How would your decisions be impacted by ignoring this distinction?

Reference no: EM132692049

Questions Cloud

Examine practices and payor mix to remain viable : Changes to reimbursement and payment structures over the last few years have proven to be challenging to home health agencies. Discuss why home health agencies.
How much is the value of the equity instrument : The PV factor of 9% on the 5th year is .65. How much is the value of the equity instrument or the detachable warrants? SHOW A DETAILED SOLUTION
Calculate apple current ratio for these two years : Explain the three factors that would influence your evaluation as to whether Apple's current ratio is good or bad. What do the ratios tell you about Apple?
Create a presentation of evidence-based intervention : Create a professional presentation of your evidence-based intervention and change proposal to be disseminated to an interprofessional audience of leaders and.
Why distinction between variable and fixed costs important : Why is the distinction between variable and fixed costs important when making break-even decisions and other costing/production/sales decisions?
Leadership skills within unit manager staffing : As defined by the leadership team, the intervention is to develop stronger leadership skills within the unit manager staffing,
Describe the future of healthcare leadership : Imagine that you have been appointed the director of health at the Kaluyu Memorial Hospital in Nairobi, Kenya-a for-profit hospital. The facility is also.
Calculate the accumulated depreciation for b-b company : Calculate the accumulated depreciation in Year 2 assuming the use of the double-declining balance method. An estimated useful life of 4 years.
Explain how an investor can use the capital structure : Explain how an investor can use the capital structure of a company, including the cost of that capital, to determine the value of assets in that company

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How does target cost concept differ from cost-plus approch

How does the target cost concept differ from cost-plus approach? which industry may use target cost concept for pricing?Explain differential analysis

  Compute the accounting rate of return

Compute the accounting rate of return using the initial required investment. Compute the net present value of the investment. Compute the payback period.

  Estimate the total fixed overhead costs of the company

If Aldridge expects to produce and sell 30,000 units per month for the foreseeable future, should they lease the new machine? Why?

  Record the summary transactions in general journal form

Record the summary transactions in general journal form. The company for Sterling Products Company uses a job- order costing system.

  Prepare a report to recommend about abc model

HI5017 Managerial Accounting - You are required to prepare a report to recommend about ABC model for your company - An explanation of how ABC model aligns

  Determining the traditional costing-activity based costing

K's Cornerspot, a popular university eatery in a competitive market, has seating & staff capacity to serve about 600 lunch customers every day. For the past 2 months, demand has fallen from its previous near-capacity level. Concerned about his dec..

  Find which of the variances

Poorly trained workers could have an unfavorable effect on which of the following variances?Labor Rate, Variance Materials,Quantity Variance

  Income statement and selected balance sheet data

1.Lansing Company's 2013 income statement and selected balance sheet data at December 31, 2012 and 2013 follow.

  Compute simple rate of return and internal rate of return

Compute the Simple rate of return, Net present value and Internal rate of return. Should the company purchase the machine? Why or why not?

  Compute the company budgeted sales for the next week

Compute the company's budgeted sales for the next week. Robust Resources expects to sell 400 units of Product A and 360 units

  Prepare the entry to assign factory labor to production

Prepare the entry to assign factory labor to production and prepare the entry to record the factory labor costs for the month of January.

  What would be the journal entry to record the purchase

Direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, what would be the journal entry to record the purchase?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd