{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACC Week 6 Check Point - activity level is A Mixed cost is...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC / 120 Check Point – Cost, Volume, and Profit Questions Question 1 Indirect Labor is a variable cost because the cost varies in total directly and proportionately with changes in the activity level. It does increase from 10,000 to 20,000 as well. Supervisory Salaries is a Fixed Cost because it is a salary cost. Salaries remain the same throughout the year no matter what the activity level is. Maintenance is going to be a mixed cost because the cost contains both a variable and a fixed element. The mixed cost can change in total but not in proportionately with changes in the activity levels. Question 2 A variable cost is a cost that varies in total directly and proportionately with changes in the activity level. A fixed cost is a cost that remains the same throughout the year no matter what the
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: activity level is. A Mixed cost is a cost that contains both a variable and a fixed element. It can change in total but not in proportionately with changes in the activity levels. Question 3 A CVP income statement is a Cost-Volume-Profit Income Statement. This is the study of the effects of changes in the cost and volume of a company’s profits. It is important to management because it has setting selling prices, determining products mix, and maximizing use of production facilities. There are five basic components that CVP analysis considers with the interrelationships among the components. Volume or level of activity, units selling prices, variable cost per unit, total fixed cost and sales mix are the five basic components....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern