A student in your cost accounting class says, "This whole subject of differential costing is easy; variable costs are the only costs that are relevant." Using an example, what would you tell that student?
What will be an ideal response?
While student answers may vary with respect to examples, here is one possible response. Variable costs are usually relevant when talking about changes in production volumes. However, if the change in production volume extends beyond the "relevant range," some fixed costs may also be differential. In addition, there are opportunity costs that may be differential for a certain decision. In some cases, there may be no change in variable costs. For example, if a company were to add a second copier in the office workroom to expedite copying, the number of copies produced would be unchanged, but the fixed costs of the equipment would approximately double.
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a. the dollar amount must exceed $100. b. it must never have occurred before. c. it must relate to a typical activity of the business. d. recurrence in the foreseeable future must be unlikely.
Noah Webster supported himself through sales of his spelling book over 100 million copies of the book were sold
A) properly constructed sentence B) run-on C) misplaced parts D) dangler E) choppy
Most business letters and memos are prepared with
a. justified left and right margins. b. justified left margin and ragged right margin. c. ragged left margin and justified right margin. d. ragged left and right margins.
If a franchise looks good as an investment, the entrepreneur may request a franchise package from the franchisor at no cost, which usually contains a draft franchise agreement or contract.
Answer the following statement true (T) or false (F)