Homework Answers
Chapter 2
Q1. Fixed Costs are the costs which are incurred irrespective of whether the production takes place. For example; rent on office premises; it has to be paid whether or not the company is running its business. They are also known as periodic cost. Another example of fixed cost is Insurance.
Variable Costs, on the other hand, are directly linked to production. Examples of Variable cost is Direct Material Cost and Direct Labour Cost, which has to be incurred based on the volume of production.
Q2. Mixed costs, also known as Semi-Variable costs, are expenses which are incurred for both production related purposes and also for the entire business. It contains proportions of both Variable and Fixed Costs.
Some Examples of Mixed Costs are: Electricity, Repairs and Maintenance, Heat and Power, Fuel and Telephone and Internet Charges.
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Q5. Give an example of the role accounting information plays in the investment planning for a...
Chapter 1 Q2. Describe how accounting information helps shareholders and lenders to make decisions concerning the...
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2. (From the presentation, see the previous example to solve the problem) Landon's Sportswear is planning...
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74 Edmond Survey of Accounting Se (2018) - Full color sohbound 74 Chapter 2 QUESTIONS ity,...
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Chapter 1 Q2. Describe how accounting information helps shareholders and lenders to make decisions concerning the operations and performance of the entity Q3. List five stakeholders of accounting information. Describe the requirements for each one, for example, lenders would need information regarding the business's ability to repay debt and service a loan Stakeholder Accounting Information and decision making Q5. Give an example of the role accounting information plays in the investment planning for a retired cricketer and a retired public...
2. (From the presentation, see the previous example to solve the problem) Landon's Sportswear is planning to expand The company has identified five critical location factors and their relative weights. The relative performance scores for each of the the potential sites are shown in the following table Factor Weight Akron Cleveland Columbus Proximity to suppliers 0.30 Labor costs 0:20 Freight costs Quality of life 0.15 85 85 90 Labor supply quality 0.15 a) What are the weighted scores for the...
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