Sheree_JohnsonII_BUS340_Week6Assignment

Sheree_JohnsonII_BUS340_Week6Assignment - Sheree M. Johnson...

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Sheree M. Johnson II November 17, 2010 BUS340 - Managerial Accounting Week 6 Assignment Exercise 22-1: Cost behavior in graphs Following are five graphs representing various cost behaviors. (1) Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear. (2) Identify the graph (by number) that best illustrates each cost behavior: (a) Factory policy requires one supervisor for every 30 factory workers; (b) real estate taxes on factory; (c) electricity charge that includes the standard monthly charge plus a charge for each kilowatt hour; (d) commissions to salespersons; and (e) costs of hourly paid workers that provide substantial gains in efficiency when a few workers are added but gradually smaller gains in efficiency when more workers are added. (1.) 1.Variable Cost 2. Fixed Cost 3. Mixed Cost 4. Curvilinear Cost 5. Step-wise Cost (2.) 1. (c) electricity charge that includes the standard monthly charge plus a charge for each kilowatt hour 2. (b) real estate taxes on factory 3. (d) commissions to salespersons
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This note was uploaded on 01/16/2011 for the course BUS 340 taught by Professor Linlu during the Spring '10 term at Stratford.

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Sheree_JohnsonII_BUS340_Week6Assignment - Sheree M. Johnson...

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