Question

In: Accounting

Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost...

Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost sales?

a.	prevention costs.
b.	appraisal costs.
c.	internal failure costs.
d.	external failure costs.

2. Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent?

a.	irrelevant range.
b.	relevant range.
c.	short-range.
d.	long-range.

3. J-Mobile provides cellular phone and Internet services with a plan that provides up to 1,000 minutes of airtime usage for a flat rate of $99.99 per month plus a charge for any minutes used over this amount at the rate of $0.10 per minute in excess of the minimum 1,000 airtime minutes. Which of the following describes the cost of the J-Mobile service?

a.	fixed cost, only.
b.	variable cost, only.
c.	semi-variable cost.
d.	semi-fixed cost.

Expert Solution

1

Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost sales?

Answer: external failure costs.

________________________________

2

Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent?

Answer: relevant range.

_____________________________________

3

J-Mobile provides cellular phone and Internet services with a plan that provides up to 1,000 minutes of airtime usage for a flat rate of $99.99 per month plus a charge for any minutes used over this amount at the rate of $0.10 per minute in excess of the minimum 1,000 airtime minutes. Which of the following describes the cost of the J-Mobile service?

Answer: semi-variable cost.

ekkarill92 answered 3 years ago

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