Costs that vary in proportion to volume changes, but not directly are considered:
a. semivariable costs.
b. factory overhead costs.
c. variable costs.
d. personnel costs.
a
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Answer the following statements true (T) or false (F)
Ultimate Travel Company fabricates automobiles. Each auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows:
A factory in India has offered to supply Ultimate Travel with ready-made units for a cost of $8 each. Assume that Ultimate Travel's fixed costs are unavoidable, but the company could use the vacated production facilities to earn an additional $5,000 of profit per month. In order to maximize operating income, Ultimate Travel should outsource.
Medicare taxes are paid by both the employee and the employer
Indicate whether the statement is true or false
Ressen Company finds that typically 30% of a month's sales are for cash. Payments on accounts receivable are 60% in the month of sale and 38% in the month following sale. Budgeted sales for June are $100,000, for July $140,000, and for August $120,000. What are the total cash receipts budgeted for July?
A) $127,400 B) $85,400 C) $122,000 D) $262,000 E) $140,000
The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park. Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service. The average service time of both employees is 2 minutes to provide service. The arrival rate follows Poisson distribution, and the service time follows a negative exponential distribution. Determine the average time the customer spends in the system.
a. 2.25 minutes b. 3 minutes c. 0.25 minutes d. 1 minute