The simplifying assumption that costs and volume vary in straight-line relationships makes the analysis of cost behav-ior much easier. What factors make this a reasonable and useful assumption in many cases?

Q: explain why GAAP requires full absorption costing (instead of variable costing) if absorption…

A: Introduction:- i)Absorption costing:- Under the absorption costing, The following costs included in…

Q: Explain the following as approaches to analysing the costs of the logistics function:  (i)…

A: Following are the analysis of costs of logistic functions: 1. Fixed Costs/Variable cost Fixed cost…

Q: What is meant by an activity base when dealing with variable costs? Give several examples of…

A:

Q: CVP analysis is most important for the determination of [A] sales revenue necessary to equal fixed…

A: Cost: It refers to the economic value incurred by the company for producing a product or service.

Q: ost flow methods and assumptions. What

A: The different cost flow methods and assumptions are as follows: FIFO LIFO Weighted average

Q: se explain the answer thoroughly.  Is this statement "if all the allocation base in the…

A: Allocation base in the predetermined overhead rate is the percentage of overhead which will be…

Q: What is the chief drawback of the high-low method of cost estimation? What problem could an outlier…

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Q: The main problem with the cost plus strategy is O incentive to show higher costs. incentives to…

A: Cost - plus pricing strategy:- A cost-plus pricing strategy, also known as a markup pricing…

Q: The reason for some costs to be mixed in nature is? A. Presence of sunk cost in the cost structure.…

A: Fixed costs are those costs which do not change with change in level of activity like Rent Expense…

Q: Marginal costing can provide useful information for decision-making. However, there are limitations…

A: There are various limitations of marginal costing few of them are stated below.

Q: Which of the following statements related to cost estimation methods is false? The least-squares…

A: Following is the answer to the given question

Q: Describe the visual-fit method of cost estimation. What are the main strengths and weaknesses of…

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Q: Explain the difference between fixed cost and variable cost? Support your answer with examples

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: “Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of…

A: Indirect cost pool refers to the accumulated cost that jointly benefits two or more costs…

Q: "ABC systems may result in misallocation of indirect costs." Do you agree? Give reasons for your…

A: ABC system means Activity Based Costing system in which all indirect costs or overhead costs are…

Q: Why is it necessary to distinguish between variable and fixed costs when dealing with mixed costs

A: Introduction:- Every Business expenses are classified as either fixed or variable costs. on other…

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: How do step-wise costs and curvilinear costs differ?

A: There are different types of costs such as variable costs, fixed costs, step costs, and curvilinear…

Q: Managers often assume a strictly linear relationship between cost and volume. How can thispractice…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: Types of Fixed and Variable cost with the help of example and graph?

A: Costs are the total spent amount for the expenditures and for producing the goods and services.…

Q: What is the primary disadvantage of basing the costplus pricing formula on absorption cost?

A: Definition: Cost plus-pricing approach: The pricing approach used by the companies to set the target…

Q: The high-low method used in determining costs can be used to estimate the cost queation using just…

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Q: Which of the following is not a step st driver rate by the volume of cost w to reduce the costs of…

A: Explanation: Activity based costing is a costing  technique where production is split into different…

Q: Differentiate variable cost from fixed cost. Please help me I really need the answer, clear…

A: Cost accounting is the one that is used to calculate the production cost per unit or in total a…

Q: Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.…

A: Variable costing simply covers the variable costs actually incurred in production, but not any of…

Q: The reason for some costs to be mixed in nature is: Presence of sunk cost in the cost structure.…

A: Mixed Cost:- This cost is a combination of the fixed cost and variable cost. It means that one…

Q: Explain the difference between a controllable and a noncontrollable cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Please explain step by step how to solve the question for cost allocation by using the double…

A: Cost allocation is the as the name suggests the allocation or in other words, the distribution of…

Q: Why can unitized fixed costs cause errors in decision making?

A: Decision making process: Decision making process requires an understanding of a grasp of illegal…

Q: How is uniform cost search different from plain BFS?

A: UCS : Uniform Cost Search is an uninformed search algorithm. It cannot deal with a heuristic…

Q: Explain why it's assumed that the cost-time curve is straight. What is the most practical form to…

A: The project cost/project time tradeoff is a significant addition to the fundamental network analysis…

Q: simple cost analysis method to identify fixed costs and variable costs in a linear cost function is…

A: High low method is method which separates the elements of fixed cost and variable cost from the…

Q: Which of the following statements related to cost estimation methods is false? O a. The most complex…

A: Cost estimation methods means by which method variable costs and fixed costs of the business can be…

Q: uantity order to reduce the overall cost is usually stated as EOQ. why it is related to one time…

A: Step 1   Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…

Q: In the economic order quantity (EOQ) model, where does the optimal order quantity value exist? O…

A: Economic order quantity is the quantity that is best for the business. It shows the quantity where…

Q: Explain why cost predictions based on the same cost driver can differ when applying the high-low…

A: The High-low method is a cost computation technique that separates variable and fixed cost from…