Consider the six costs that follow.1. Advertising and promotion costs of a do-it-yourself retailer2. Surgical supplies used in a hospital's operating room3. Aircraft depreciation charges of an airline4. Utility charges that include a minimum-use fee, for a small business5. Annual business licensing fee paid by a daycare center6. Truck fuel consumed by a road construction companyRequired: A. Classify each of these costs as variable, committed fixed, discretionary fixed, or semivariable.B. Briefly describe the behavior of a per-unit variable cost as activity changes.C. What elements are present in a semivariable cost that cause it to behave in a semivariable manner?D. Generally speaking, does management have more flexibility when dealing with committed fixed costs or discretionary fixed
costs?
What will be an ideal response?
| A. | 1. Discretionary fixed |
3. Committed fixed
4. Semivariable
5. Committed fixed
6. Variable
B. Per-unit variable costs remain constant as activity levels change.
C. Semivariable, or mixed, costs contain both a variable and fixed component.
D. Discretionary fixed costs.
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Verbal, graphical, and mathematical models depict the same phenomenon or theoretical framework in different ways
Indicate whether the statement is true or false
Modesto, Inc leased machinery with a fair value of $250,000 from Layton Machine Co on December 31 . 2014 . The contract is a six-year noncancelable lease with an implicit interest rate of 1 . percent. The lease requires annual payments of $50,000 beginning December 31 . 2014 . Modesto appropriately accounted for the lease as a capital lease. Modesto's incremental borrowing rate is 1 . percent
Assuming the present value of an annuity due of 1 for 6 years at 1 . percent is 4.7908 and the present value of an annuity due of 1 for 6 years at 1 . percent is 4.6048, what is the lease liability that Modesto should report on the balance sheet at December 31 . 2014? a. $189,540 b. $200,000 c. $230,240 d. $239,540
Describe an example of a product placement you have recently seen, and if it was effective.
What will be an ideal response?
During this phase, progress and success are measured, project documents are archived, lessons learned are captured, and project activities are formally closed
A) post-implementation B) closure C) conceptualization D) implementation