10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months.…
* MWG felt the economics of the scheme were compelling. Among the new costs were labor costs for picking and delivery, equipment, storage space, and a transaction fee paid to service supplier. When the MWG is applied, these costs should be considered.…
When Activity Based Costing (Weetman, 2010, p. 85) is used to calculate the monthly cost per unit, two types of costs are distinguished. Firstly the direct costs, consisting of the direct manufacturing costs and the run labor costs, and secondly the indirect costs, consisting of the machine usage costs or depreciation and the overhead costs. These costs allow us to calculate the monthly cost per unit, see Appendix 1 for the Excel file of the calculations.…
Understanding the distinction among fixed, mixed, and variable costs among the team is clear and understandable. Fixed costs are costs within an organization that remain the same no matter what changes occur in activity levels. Examples of fixed costs are rent or insurance paid. Even though the number of units produced changes the costs remain the same. If a manufacturer rents the building in which they operate, the cost per unit produced would fluctuate. For example, if the rent is $500 and 500 units produced, the cost is $1 per unit. When 5,000 units produced, cost is $0.10 per unit. Fixed costs are a little confusing because the thought of how fixed cost could fluctuate, but the cost does not fluctuate. The portion of the cost fluctuates, depending on the number of units produced. The fewer units produced a higher proportion of costs distributed to each unit, and the more units produced, a smaller proportion of the costs distributed to each unit.…
For each order received through a sales representative, the variable cost can be determined as follow:…
I saw Sales Promotion for Salem Data being the VC because depending on how good business is doing (increased revenue and clients) would depend on how much money would need to be spent in promotions.…
| fixed costs per unit will change and variable costs per unit will remain the same…
Apple Valley Family Practice is a medical practice with four locations in the Minneapolis/St. Paul area. The clinical staff consists of 20 physicians, all of whom practice in one or more areas of family medicine, and 46 physician extenders and nurses.…
2-5. I agree that it is confusing to think of fixed costs on a per-unit basis because changes to the cost driver take place at a slower rate than they do with a variable cost. So it would be difficult to single out any costs.…
The report prepared by the bookkeeper compares average budgeted per unit revenues and costs to average actual per unit revenues and costs. This approach implicitly assumes that all costs are strictly variable; only variable costs should be constant on a per unit basis. The average fixed cost should decrease as the level of activity increases and should increase as the level of activity decreases. In this case, the actual level of activity was greater than the budgeted level of activity. As a consequence, the average cost per unit for any cost that is fixed or mixed (such as office expenses, equipment depreciation, rent, and insurance) should decline and show a favorable variance. This makes it difficult to interpret the variance for a mixed or fixed cost.…
They are different types of cost structures uses by companies they are: fixed cost, fixed cost and variable cost, and variable cost. According to this case, it seems like home depot operates their business with a significant portion of fixed cost; the higher their sales,…
Variable costs are incurred for every unit of volume, as a result the total variable costs change according to the changes in volume. In the case of Pizza Hut the variable costs are associated to the materials and…
This segment is characterised by multiple service relationships. The pricing in this segment is transaction based and depends on the size of transactions and on the banks' relationship with the corporate. Hence, the pricing is decided on a one to one basis and public.…
was used to repeat to his father that bigger dimensions were necessary to offer to the market a wide…
A fixed cost is costs that in total are constant within the relevant range as the level of output increases or decreases. Fixed costs are those that stay the same in total regardless of the number of units produced or sold. Total fixed costs remain constant but fixed costs per unit changes as fewer or more units are produced. [2] Fixed unit costs vary inversely with activity or volume. If more units are produced than anticipated, the fixed costs are spread over more units, thus decreasing the fixed cost per unit; if fewer units are produced than anticipated, the fixed costs are spread over fewer units, thus increasing the fixed cost per unit.…