250_Hwk_Chapter_3C

250_Hwk_Chapter_3C - ACCT 250 HOMEWORK CHAPTER 3C E3-44 It is interesting that as firm size increases finance cost as a percentage of revenues

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ACCT 250 HOMEWORK CHAPTER 3C c2a5de6ba58f88711a85783e51b35f76e7c3d730.xls PAGE 1 OF 2 E3-44 It is interesting that as firm size increases, finance cost as a percentage of revenues falls, both for manufacturing firms and service firms. These results seem to indicate that some portion of finance costs are fixed while other parts are variable. This means that, no matter how large, firms have certain, unavoidable fixed finance costs. As firm size increases, these fixed costs decline as a percentage of total revenues, because the costs are fixed I would ask the researchers if they attempted to determine the proportion of total costs which are fixed in companies of various sizes. P3-51 Statement of Cost of Goods Manufactured Beginning Direct materials inventory 18,000 Direct materials purchases 155,000 Direct materials available 173,000 Less: Ending Direct materials inventory 25,000 Direct materials used 148,000 Direct labor 487,000 Overhead 286,000 Total manufacturing cost 921,000 Plus: Beginning WIP inventory
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This homework help was uploaded on 04/18/2008 for the course ACCTG 250 taught by Professor Rabe during the Spring '08 term at Luther.

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250_Hwk_Chapter_3C - ACCT 250 HOMEWORK CHAPTER 3C E3-44 It is interesting that as firm size increases finance cost as a percentage of revenues

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