Business: cost from marginal cost. A gourmet popcorn company determines that the marginal cost, in dollars, of the xth bag of gourmet popcorn is given by C' (x) = -0.0004 x + 2.25 C(0)=$0 Find the total cost of producing 1000 bags of popcorn.
In: Math
Cost Accounting 8th Canadian Edition
If a cost can be traced directly to its cost object, why might a company choose not to trace but to include that cost in the indirect cost category and allocate on some arbitrary basis? Explain the advantage and disadvantage of tracing versus not tracing.
In: Accounting
1–1 What are the three major types of product costs in a manufacturing company?
1–2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labor,
(d) indirect labor, and (e) manufacturing overhead.
1–3 Explain the difference between a product cost and a period cost.
1–4 Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.
In: Accounting
|
Q |
TFC |
TVC |
TC |
|
0 |
10 |
0 |
10 |
|
1 |
10 |
8 |
18 |
|
2 |
10 |
14 |
24 |
|
3 |
10 |
18 |
28 |
|
4 |
10 |
24 |
34 |
|
5 |
10 |
32 |
42 |
|
6 |
10 |
43 |
53 |
|
7 |
10 |
58 |
68 |
In: Economics
INSTRUCTIONS FOR TABLE 1 and Two Graphs-21 points
1) Calculate the Total Cost (TC) for each level of output. (3 points)
2) Calculate the Average Fixed Cost (AFC) for each level of output. (3 points)
3) Calculate the Average Variable Cost (AVC) for each level of output. (3 points)
4) Calculate the Average Total Cost (ATC) for each level of output. (3 points)
5) Calculate the Marginal Cost (MC) for each level of output. (3 points)
Using the data from Table 1 draw two graphs:
Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves. (3 points)
Draw a graph showing the Average Fixed Cost, Average Variable Cost, and Average Total Cost curves and Marginal Cost curve. (3 points)
TABLE 1
(1) (2) (3) (4) (5) (6) (7) (8)
Total Total Total Total Average Average Average Marginal
Product Fixed Variable Cost Fixed Variable Total Cost
Cost Cost Cost Cost Cost
(Q) (TFC) (TVC) (TC) (AFC) (AVC) (ATC) (MC)
0 $100 0 $______ ______
1 100 90 ______ ______ ______ ______ ______
2 100 170 ______ ______ ______ ______ ______
3 100 240 ______ ______ ______ ______ ______
4 100 300 ______ ______ ______ ______ ______
5 100 370 ______ ______ ______ ______ ______
6 100 450 ______ ______ ______ ______ ______
7 100 540 ______ ______ ______ ______ ______
8 100 650 ______ ______ ______ ______ ______
9 100 780 ______ ______ ______ ______ ______
10 100 930 ______ ______ ______ ______ ______
In: Economics
Please explained the difference for the following: Target costing, Differential cost, Relevant cost, Sunk cost and what is the important qualitative factor to consider regarding a special order? I get confused differentiating each of these. Please explain thoroughly. Thanks
In: Accounting
a) Define and compare the following types of cost:
i. Sunk cost versus incremental cost
ii. Fixed cost versus variable cost
iii. Incremental cost versus marginal cost
iv. Opportunity cost versus out-of-pocket cost
b) Point out which costs in the preceding question are considered “relevant” and which are considered “irrelevant” to a business decision. Explain why.
In: Economics
Fixed cost are constant on both the total cost and per unit cost basis
| True | |
| False |
In: Accounting
Given:
Verizon
Total cost = $23 billion
Opportunity cost of capital = 10%
Annual cost = $2.3 billion
Expected demand = q = 2,100,000 – 6P
AT&T
Total cost = $4.6 billion
Opportunity cost of capital = 10%
Annual cost = $460 million
Expected demand = q = 425,000 – 60P
1. Calculate the expected annual profit that Verizon will earn if they price at service at $30/month, $60/month or $100/month. At which price do they maximize profit?
2. Calculate the expected annual profit that AT&T will earn if they price at service at $30/month, $60/month or $100/month. At which price do they maximize profit
In: Economics
What are the similarities and differences between prime cost, product cost and period cost. b) What are the similarities and differences between fixed costs, variable costs.
In: Accounting