FunctionInsert letter of appropriate driver (A through F)1.Purchasing2.Billing3.Shipping4.Computer Support5.Personnel6.Customer ServiceAnswer: FunctionInsert letter of appropriate driver (A through F)1.PurchasingF2.BillingD3.ShippingB4.Computer SupportE5.PersonnelA6.Customer ServiceCDiff: 3Objective: 3AACSB: Application of knowledge33) Describe both variable and fixed costs. Explain why the distinction between variable and fixed costs is important in cost accounting.

Diff: 3Objective: 3AACSB: Analytical thinking

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2.4 Objective 2.4 1) A unit cost is computed by ________.A) multiplying total cost by the number of units producedB) dividing total cost by the number of units producedC) dividing variable cost by the number of units producedD) dividing fixed cost by the number of units producedAnswer: BDiff: 1Objective: 4AACSB: Analytical thinking2) In its first year of operation, the Excellent Publishing Company sells 52,000 units and has 1,700 units in stock at year end. The cost of goods sold are $3,100,000. What are the total manufacturing costs for the year if the average unit cost is $8.50?

A

Diff: 2Objective: 4AACSB: Analytical thinking3) When 25,000 units are produced, fixed costs are $21.00 per unit. Therefore, when 20,000 units are produced, fixed costs will ________.

A

Diff: 3Objective: 4AACSB: Application of knowledge4) When 24,000 units are produced, variable costs are $12.00 per unit. Therefore, when 18,000 units are produced ________.

ADiff: 2Objective: 4AACSB: Application of knowledge