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 10 months 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?

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...

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...

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...

The costs of issuing common shares: a. They are recorded in a separate account (unamortized stock...

The costs of issuing common shares: a. They are recorded in a separate account (unamortized stock issue costs) and amortized over a period of no more than 10 years b. They are posted to a separate account but are not amortized unless the company withdraws the shares c. They are subtracted from the capital paid in excess (additional paid-in capital) d. They are accounted for as an expense as incurred 2. When a company issues shares (common or preferred) in...

Question