An example of a cost likely to have a fixed behavior pattern is: a) sales commission....

An example of a cost likely to have a fixed behavior pattern is: a) sales commission. b) production labor wages. c) insurance expense. d) shipping cost for packaging equipment.

Solutions

Expert Solution

An example of a cost likely to have a fixed behaviour pattern is : c) Insurance expense.

Insurance is for coverage of any property, plant and equipment for a given period of time and is most of the times fixed in nature. On the other hand, sales commission varies with sales, production labor wages varies with hours and shipping cost varies with the units shipped .

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Variable and Fixed Cost Behavior

Munchak Company’s relevant range of production is between 9,000 and 11,000 units. Last month the company produced 10,000 units. Its total manufacturing cost per unit produced was $70. At this level of activity the company’s variable manufacturing costs are 40% of its total manufacturing costs.Required:Assume that next month Munchak produces 10,050 units and that its cost behavior patterns remain unchanged. Label each of the following statements as true or false with respect to next month. Do not use a calculator...

Define discretionary and committed fixed cost with example.

(1) "Describe what is meant by "Cost Behavior". (2) "Distinguish between a Variable Cost and Fixed...

(1) "Describe what is meant by "Cost Behavior". (2) "Distinguish between a Variable Cost and Fixed Cost (in Total and Per Unit)". (3) "Described what is a "Mixed Cost". (4) "Discuss the purpose of uses of the "High-Low Method".

which of the following is an en example of fixed cost? labor cost associated with the...

which of the following is an en example of fixed cost? labor cost associated with the production of a new product shipping cost associated with the sale of a new product coat of equipment purchased for an assembly line to be used in the production kf a new product assembly costs associated with the production kf a new product

Wilkens Company Wilkens Company wants to determine the cost behavior pattern of maintenance costs. Wilkens has...

Wilkens Company Wilkens Company wants to determine the cost behavior pattern of maintenance costs. Wilkens has decided to use linear regression by employing the equation y = a + bx for maintenance costs. The prior year's data regarding maintenance hours and costs, are given in the data below. Hours of Activity Maintenance cost January 490 5,700 February 325 4,210 March 425 5,050 April 360 4,510 May 500 5,680 June 450 5,260 July 425 5,050 August 375 4,630 September 470 5,420...

Firms with a reputation for ethical behavior in strategic alliances are likely to have more opportunities...

Firms with a reputation for ethical behavior in strategic alliances are likely to have more opportunities to form cooperative strategies than will companies that have not earned this reputation. What actions can firms take to earn a reputation for behaving ethically as a strategic alliance partner?

Homework: Cost Behavior and Cost Prediction Oct Nov Unit Sales 4,000 6,000 Cost of...

Homework: Cost Behavior and Cost Prediction Oct Nov Unit Sales 4,000 6,000 Cost of Food Sold $ 2,000 $ 3,000 Depreciation 500 500 Supplies 500 750 Wages and Salaries 5,000 5,500 Utilities 1,400 1,500 Rent 4,000 4,000 Total $ 13,400 $ 15,250 What is the Unit Variable Cost and Fixed Costs? Predict the Average and Total Costs for 7000 units

actual sales : 8500 unit variable cost actual $ 188.800 fixed cost actual $ 71.200 sales...

actual sales : 8500 unit variable cost actual $ 188.800 fixed cost actual $ 71.200 sales price $ 31,00 sales budget : 9000 unit. Variable cost standar perunit $ 21,8 Fixed cost budget $ 70.000 Questions 1. Static budget variances. 2. Sales activity variances. 3. Using a flexible budget at the actual activity level, calculate the contribution margin budget, the profit budget, and the flexible budget variant.

Describe the concept of cost behavior and the differences between fixed, variable, and mixed costs. Differentiate...

Describe the concept of cost behavior and the differences between fixed, variable, and mixed costs. Differentiate product costs from period costs and direct costs from indirect costs. Compare the different types of income statements and the purposes of each. Please explain to the best of your knowledge one or more of the following: 1- Product Cost . 2- Period Cost.. 3- Opportunity Cost 4- Sunk Cost 5- Shut -down Costs 6- Applied manufacturing overhead.

Describe the two assumptions used in cost estimation behavior. Give an example of one of the...

Describe the two assumptions used in cost estimation behavior. Give an example of one of the assumptions.

Subjects