Question

Cost Behavior in Real Companies

Choose a company that manufactures a product or provides a service in this activity, you will be making reasonable estimates of the costs and activities associated with this company; companies do not typically publish internal cost or process information. 

Describe the company you selected and the products or services it provides.

List ten costs that this company would incur. Include costs from a variety of departments within the company, including human resources, sales, accounting, production, service, and others. Make sure that you have at least one cost from each of the following categories: fixed, variable, and mixed. 

Classify each of the cost you listed as either fixed, variable, or mixed. Justify why you classified each cost as you did.

Describe a potential cost driver for each of the variable and mixed costs you listed. Explain why each cost driver would be appropriate for its associated cost.

Discuss how easy or difficult it was for you to decide whether each cost was fixed, variable, or mixed. Describe techniques a company could use to determine whether a cost is fixed, variable, or mixed.


0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Cost Behavior in Real Companies
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Cost Behavior in Real Companies

    Choose a company that manufactures a product or provides a service in this activity, you will be making reasonable estimates of the costs and activities associated with this company; companies do not typically publish internal cost or process information. Describe the company you selected and the products or services it provides.List ten costs that this company would incur. Include costs from a variety of departments within the company, including human resources, sales, accounting, production, service, and others. Make sure that you...

  • ABC in Real CompaniesChoose a company in any of the following categories: airline, florist, bookstore, bank,...

    ABC in Real CompaniesChoose a company in any of the following categories: airline, florist, bookstore, bank, grocery store, restaurant, college, retail clothing shop, movie theater, or lawn service. In this activity, you will be making reasonable estimates of the types of costs and activities associated with this company; companies do not typically publish internal cost or process information. Be reasonable in your cost estimates and include your assumptions used in selecting costs.Basic Discussion Questions1. Describe the company selected, including its...

  • Describe a potential cost driver for each of the variable and mixed costs listed below. Explain...

    Describe a potential cost driver for each of the variable and mixed costs listed below. Explain why each cost driver would be appropriate for its associated costs. 1. Raw materials costs 2. Supplies costs 3. Managerial salary costs 4. Insurance costs 5. Amortization costs 6. Shipping costs 7. Hourly production costs 8. Sales commision 9. Advertising costs 10. Automobile costs

  • ERPSim Cost Classification Assignment In managerial accounting, costs are classified into fixed, variable or mixed costs...

    ERPSim Cost Classification Assignment In managerial accounting, costs are classified into fixed, variable or mixed costs (based on behavior); product or period costs (for external reporting); and direct or indirect costs (based on traceability). Classification of costs based on behavior helps in cost-volume-profit analysis. Classification based on traceability is important for accurate costing of jobs and units produced. Classification for the purpose of decision-making is important to help management identify costs which are relevant for a decision. This exercise is...

  • Describe Apple products, and the specific manufacturing costs it incurs. Categorize each cost into the three...

    Describe Apple products, and the specific manufacturing costs it incurs. Categorize each cost into the three manufacturing cost categories and state if the costs are variable, fixed, or mixed. Explain how you came to your conclusions.

  • COST ACCOUNTING PROBLEM Solve the problem with an example based in a computers (cpu) company Indications: 1. Create a fi...

    COST ACCOUNTING PROBLEM Solve the problem with an example based in a computers (cpu) company Indications: 1. Create a fictitious, manufacturing or service company, with two different jobs (production lines) clearly identified. (10) 2. Estimate the sales prices, variable costs, fixed costs and the break-even point in sales units and income to be able to estimate the total sales and costs that the company will incur during a year. (10 + 10 + 10) 3. Describe the costing process that...

  • please help awnser these questions. Describe what a fixed cost is, compared to a curvilinear cost,...

    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...

  • Cost behavior: (check all that apply) A. refers to how a cost will change as activity...

    Cost behavior: (check all that apply) A. refers to how a cost will change as activity level changes B. is the relative proportion of each type of cost in an organization C. is a detailed analysis technique used to determine whether costs are fixed or variable D. categorizes costs as fixed, mixed and variable

  • Select a manufacturing company and become familiar with its products. Describe the company, its products, and...

    Select a manufacturing company and become familiar with its products. Describe the company, its products, and the specific manufacturing costs it incurs. Categorize each cost into the three manufacturing cost categories and state if the costs are variable, fixed, or mixed. Explain how you came to your conclusions.

  • A firm offers accounting services to businesses at a cost. After operating for a couple of...

    A firm offers accounting services to businesses at a cost. After operating for a couple of months with an initial billing rate of $25/hour. After collecting cost data for a couple of months, the firm then adjusts the rate. The activity and cost data for the first two months is included in the image below. Please answer all parts of A, B, C, and D. Note that C & D have multiple questions. A. Classify each cost in the image...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT