Question

please help awnser these questions. Describe what a fixed cost is, compared to a curvilinear cost, variable cost, stepwise cost, etc. Describe what a variable cost is and what it is not, when compared to other costs.

Describe in detail what a curvilinear cost is and what it is not, when compared to other costs.

Describe what a step-wise cost is, and what it is not, when compared to other costs.

Describe what a mixed cost is, and what it is not, when compared to other costs.

Describe how curvilinear costs behave.

Describe how fixed costs behave, compared to variable costs, compared to total variable costs, compared to variable costs per unit, etc.

Describe what exactly is Cost-volume-profit analysis and how it can be used.

Describe which type of costs are classified as variable, compared to other classifications.

Demonstrate that you are familiar with graphing cost-volume profit data on CVP chart

Describe which costing method(s) charge all manufacturing costs to its products.

Describe what is or is not included in the product cost under variable costing, and whether or not it includes fixed manufacturing overhead or direct labor, direct materials, variable manufacturing overhead, all variable manufacturing costs, etc.

Demonstrate which manufacturing costs are assigned to products. Be able to assert whether or not and how many or which of these manufacturing costs are assigned to products: variable manufacturing overhead, direct materials, direct labor, and/or fixed manufacturing overhead.

Demonstrate that you are familiar with absorption costing, and what is true and not true about absorption costing. Be able to assert whether or not absorption costing assigns all manufacturing costs to products, and whether or not it requires only variable costs to be treated as product costs.

Demonstrate you understand what is true about variable costing and what is not true. Be able to assert whether or not only manufacturing costs that change in total with changes in production levels are included in product costs, and why or why not. Be able to assert whether or not variable costing is a traditional costing approach, and so on, etc.

Demonstrate you are familiar with and are able to assert whether or not variable costing treats fixed overhead as a period cost, and why or why not. Be able to assert whether or not absorption costing treats fixed overhead as a period cost, and why or why not, and so on, etc.

Demonstrate you are familiar with a variable costing income statement, what would be a line item for a variable costing income statement, and what would not be.

Demonstrate that you are familiar with variable costing, and are able to assert whether or not fixed manufacturing overhead is expensed as period expenses (under variable costing). Demonstrate you are able to assert whether or not direct materials and direct labor are expensed as period expenses (under variable costing) and why or why not.

Demonstrate that you are familiar with absorption costing, and be able assert whether or not fixed inventory costs are treated in the same manner as they are under variable costing, and why.

Demonstrate/explain why it is that when the number of units sold exceed the number of units produced, income reported under absorption costing will be lower than variable costing. Topic: Converting Income under Variable Costing to Absorption Costing. Explain whether fixed overhead cost deferred in ending inventory is either greater or less than fixed cost recognized from beginning inventory.

Answer 1

Here you have a chart with the definitions, important features, behavior and examples of the costs you are asked to compare. By using this you can answer at least 9 of the questions. I hope this helps you out.

Fixed costs	Curvilinear costs	Variable costs	Stepwise costs	Mixed costs	Total variable costs	Variable cost per unit
Expenses that don´t change in time	Expenses that have uncertain rates.	Expenses that can gradually change	Expenses that are constant for specific activities	Refer to a mixture between fixed and variable expenses	They are the sum of all variable expenses	Refers to the production cost for each unit produced
Independent from the production amount.	Depend on the increase of the production	Dependent on the volume of activity or production	Doesn´t specifically depend on the activity volume	The fixed part of them is incurred no matter the activity volume, while the variable part directly depends on it	Depend mainly on the volume of the activity or production	Depends on the production volume
Must be paid in order to run the business operations	Can be affected by external factors (holidays, government regulations, etc.)	Represent a constant amount per unit produced.	Increase or decrease when the limit set is crossed.	May be classified into any expense account such as utility or rent on the income statement	It is formed by direct materials, commissions and freight in.	Continues steady regarding to the activity level.
Some examples are: salaries, rent, insurance, etc.	Example: Labor cost increases and decreases.	Examples: utility costs, commissions, cost of raw material used in the production activity.	Examples: Creation of additional floor space, facility expansion projects.	Example: an increase in the electricity bill due to extra production.	Example: overtime, materials used in production.