Choose a company. Break that company into two separate segments. What are three common fixed costs...

Choose a company. Break that company into two separate segments. What are three common fixed costs of the company? What are three traceable fixed costs to each segment

Expert Solution

Choose a company. Break that company into two separate segments. What are three common fixed costs of the company? What are three traceable fixed costs to each segment

ekkarill92 answered 1 year ago

Choose any company. Break that company into two separate segments. Think of three common fixed costs...

Choose any company. Break that company into two separate segments. Think of three common fixed costs of the company and three traceable fixed costs to each segment.

What are "common" fixed costs not allocated to segments? Can you think of any segments that...

What are "common" fixed costs not allocated to segments? Can you think of any segments that have been eliminated from companies that you are familiar with (products, etc.). I was shopping for a small truck recently and noticed that Mazda had eliminated economy trucks from their product line. Their small truck product line must have had a negative 'segment margin".

1.What is the danger in allocating common fixed costs among products or others segments of an...

1.What is the danger in allocating common fixed costs among products or others segments of an organization? 2.From a decision-making point of view, should joint costs be allocated among joint products 3.What is a relevant cost?

Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even...

Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even point of 60,000 units. What will be the new break-even point in units if variable costs decrease by $3 per unit and fixed costs increase by $100,000? 93,333 units 33,333 units 50,000 units 200,000 units At the break-even point: Sales would be equal to total costs. Contribution margin would be equal to total fixed costs. Sales would be equal to fixed costs. Both sales...

24. If the total amount of fixed costs increases, what is the effect on the break-even...

24. If the total amount of fixed costs increases, what is the effect on the break-even point? (Assume no other changes.) A) The break-even point decreases. B) The break-even point increases. C) The break-even point remains the same. D) The break-even point is zero. 25. If the variable cost per unit increases, what is the effect on the break-even point? (Assume no other changes.) A) The break-even point increases. B) The break-even point decreases. C) The break-even point remains the...

Compute the break-even point in sales dollars. a. Assume that fixed costs of Celtics Company are...

Compute the break-even point in sales dollars. a. Assume that fixed costs of Celtics Company are $180,000 per year, variable cost is $12 per unit, and selling price is $30 per unit. Determine the break-even point in sales dollars. b. Hawks Corporation breaks even when its sales amount to $89,600,000. In 2014, its sales were $14,400,000, and its variable costs amounted to $5,760,000. Determine the amount of its fixed costs. c. The sales of Niners Corporation last year amounted to...

Why might it be a mistake to allocate fixed costs to different products or segments?

Welshpool Engineering has two production departments and two support departments. Budgeted data for the year follow. The company does not separate fixed and variable costs.

Welshpool Engineering has two production departments and two support departments. Budgeted data for the year follow. The company does not separate fixed and variable costs. Support Departments Production Departments Maintenance Power Drilling Assembly Overhead costs $160,000 $200,000 $81,500 $45,000 Machine hours - 11,250 15,000 3,750 Kilowatt-hours 20,000 5,000 18,000 162,000 The maintenance department costs are allocated based on machine hours and power department costs are allocated based on kilowatt hours. Required: Determine the total overhead costs for...

Break even analysis is at the core of unit costs. Do you believe the fixed costs...

Break even analysis is at the core of unit costs. Do you believe the fixed costs used as a numerator is the best method for this analysis? Why or why not? Answer needs to be over 5 lines, thank so much.

What is the difference between fixed costs and variable costs?’ Are there fixed costs in the...

What is the difference between fixed costs and variable costs?’ Are there fixed costs in the long run? Explain briefly. Are fixed costs also sunk costs? Explain. What are diminishing marginal returns as they relate to costs? Which costs are measured on a per-unit basis: fixed costs, average cost, the average variable cost, variable costs, and marginal cost? How is each of the following calculated: marginal cost, average total cost, average variable cost? What shapes would you generally expect each...

Question