What Is Relevant Range?

What Is Relevant Range? The relevant range refers to a specific activity level that is bounded by a minimum and maximum amount. Within the designated boundaries, certain revenue or expense levels can be expected to occur. Outside of that relevant range, revenues and expenses will likely differ from the expected amount. What is relevant range

What Is An Example Of A Variable Expense?

What Is An Example Of A Variable Expense? Common examples of variable costs include costs of goods sold (COGS), raw materials and inputs to production, packaging, wages, and commissions, and certain utilities (for example, electricity or gas that increases with production capacity). Which of the following are variable expense? Examples of variable costs Credit card

Which Of The Following Process Strategies Are Considered To Have A High Fixed Costs And Low Variable Costs?

Which Of The Following Process Strategies Are Considered To Have A High Fixed Costs And Low Variable Costs? Service blueprinting is a process analysis technique that focuses on the customer and the provider’s interaction with the customer. … A product focus usually has higher fixed costs and lower variable costs than a process focus. What

Why Do Fixed Costs Become Variable Costs In The Long Run?

Why Do Fixed Costs Become Variable Costs In The Long Run? In recent years, fixed costs gradually exceed variable costs for many companies. There are two reasons. Firstly, automatic production increases the cost of investment equipment, including the depreciation and maintenance of old equipment. Secondly, labor costs are often considered as long-term costs. Why are

Why Marginal Cost Eventually Increases As Output Increases?

Why Marginal Cost Eventually Increases As Output Increases? Marginal cost is the change in total cost divided by the change in output. Marginal cost is an essential factor for a firm to manage. The firm’s supply curve is practically its marginal cost curve after revenue exceeds the variable cost. If the firm can carefully manage

Why Is The Short Run Average Cost Curve U Shaped?

Why Is The Short Run Average Cost Curve U Shaped? Short run cost curves tend to be U shaped because of diminishing returns. In the short run, capital is fixed. After a certain point, increasing extra workers leads to declining productivity. Therefore, as you employ more workers the marginal cost increases. Why the cost curves

How Is Apportioned Cost Calculated?

How Is Apportioned Cost Calculated? In order to apportion the cost of electricity to one specific department, you simply multiply the amount of the overhead by the number of employees in that department, then divide that by your total number of employees. Whats apportioned cost? Apportionment is the process of distributing overhead items to cost