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$10.00 Accounting Concepts & Applications and Fundamentals of Corporate Finance
Q:Hello out there! I would like to ask for assistance in regards to the following finace questions and equations:
How do variable costs and fixed costs differ? Give an example of each.
Analyze your personal expenses on a variable and fixed basis. What are some of your personal fixed costs and variable costs? What would cause them to change?
What is C-V-P analysis used for? In the process of using C-V-P analysis, what does it meant to break even?
What is the difference between sunk costs and differential costs? Give an example of each?
FIXED COSTS AND VARIABLE COSTS
Which is the following of an example of a variable cost?
a. Insurance premium for fire insurance on the factory building
b. The salary of the company president
c. Wood used to make custom tables
d. Rent for use of a storage warehouse
e. Depreciation on the factory building
DIRECT AND INDIRECT COSTS
Which one of the following statements best explains why companies want to distinguish between direct and indirect costs?
a. To evaluate business segments on the basis of only those costs directly traceable to each segment
b. To better determine whether a company is a large organization or a small organization
c. To determine the sales prices necessary to break even
d. To better distinguish between variable and fixed costs for each product
e. To better distinguish between materials costs and labor costs
OUT-OF-POCKET COSTS AND OPPORTUNITY COSTS
Which one of the following is an example of of an opportnity cost?
a. Revenue lost from sales of cakes by deciding to sell only cookies
b. Wages paid to construction workers
c. Materials used to assemble computers
d. Ordering costs related to a customer's special order of guitar strings?
e. Rent paid for the use of a factory building
