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What is difference between unit-level and batch-level activities?
Unit-level activity have costs that are incurred for every single unit that is produced. Batch-level activity have costs that are incurred for each batch that the company is going to produce, no matter if 3 or 30 units are being produced (e.g. setup costs). This is the explanation I received from my accounting professor at least.
When preparing a merchandise purchase budget the required purchase in units equals?
budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.
Can someone help you solve this breakeven problem The break even sales revenue for a product costing 25 per unit is 550000 If budgeted sales are 10000 units what is the margin of safety?
Break Even is when: (units x selling price) = (units x cost per unit) + Fixed Costs There is not enough information to calculate a margin of safety; however, based on the information supplied: 550,000 = (10,000 x 25) + Fixed Costs 300,000 = Fixed Costs
Can someone help me solve this breakeven problem The break-even sales revenue for a product costing 25 per unit is 550000 If budgeted sales are 10000 units what is the margin of safety?
Budgeted sales = 10000 * 25 = 250000 breakeven sales = 550000 margin of safety = 550000 - 250000 = -300000
Fixed costs remain constant in total but vary inversely with changes in activity when expressed on a per unit basis?
True, because when fixed costs are viewed on a per unit basis and as activity level rises we will see a decrease in the average cost. Conversely, fix costs increases per unit as the activity level falls. An example would be the $10,000 rental cost on a machine that assembles 5,000 units which has an average cost of $2/ per unit. Conversely, if the machine only produces 2500 units the average cost will be $4/ per unit.Read more: Fixed_costs_expressed_on_a_per_unit_basis_vary_inversely_with_changes_in_activity_True_or_false
Processing an order for a number of units of a particular product is an example of?
Unit-level activity
How do you calculate the number of units sold?
How to calculate the number of units sold?
What is difference between unit-level and batch-level activities?
Unit-level activity have costs that are incurred for every single unit that is produced. Batch-level activity have costs that are incurred for each batch that the company is going to produce, no matter if 3 or 30 units are being produced (e.g. setup costs). This is the explanation I received from my accounting professor at least.
Does Fixed cost per unit increase as activity decreases and decrease as activity increases?
true.as fixed costs remain the same with change in activity, the per unit price of each unit changes inversely with activity level.rent is generally a fixed costs.if rent is $10,000, and 100 units are produced, then the per unit price is $10 with respect to rent.if rent is $10,000, and 200 units are produced, then the per unit price is $5 with respect to rent.thus, as we produced more units, or as the activity level went up, the average costs per unit decreased.
How do you do the forcasting high and low method?
When forecasting the total cost at various levels of activity (say production) complications can be encountered when cost behaviour is semi-variable. That is part of the cost is fixed and part of the cost is variable. If this is the case then you cannot simply increased tye total cost by the increase in the level of production. For example if the following data have been extracted from cost records.Production level Cost1,000 units £2,5002,000 units £4,500What would the level of cost be for 4,000 units. Well it certainly would not be £9,000, i.e. twice the cost of producing 2,000 units.We can predict the level of cost using the high low method.If we go back to basics we know that fixed costs do not change due to changes in level of activity and that variable costs will change directly in proportion to changes in level of activity.As the fixed cost element of total cost at 1,000 is the same as the fixed cost element of total cost at 2,000 units, we assume that the change in total cost between the two levels of activity is entirely due to the variable cost per unit. So the first thing we can do is calculate the change in activity and the change in total cost between the highest and the lowest level of activity.Production level CostHigh 2,000 units £4,500Low 1,000 units £2,500Change 1,000 units £2,000Therefore we can calculate the variale cost per unit at £2 per unit (£2,000 / 1,000 units)Using the equation for total cost of y = a + bx we can calculate the fixed costy = total costa = fixed costb = variable cost per unitx = level of activityWe can select either the highest or the lowest level of activitity values to substitute in the equation. Here I use the high levely = £4,500x = 2,000 unitsb = £2 per unit (calculated above)£4,500 = a + (2,000units x £2)£4,500 = a + £4,000Making a the subject of the equation we geta = £4,500 - £4,000a = £500Now we can forecast the total cost for 4,000 units of production:y = a + bxy = £500 + (4,000 units x £2)y = £500 + £8,000y = £8,500So the forecst cost to produce 4,000 units would be £8,500N.B. The high low method has limitations and if multiple data are availablke regression analysis is more accurate.
When preparing a merchandise purchase budget the required purchase in units equals?
budgeted unit sales - beginning merchandise inventory + desired merchandise ending inventory.
Which of the answers are some common methods to measure performance for work in progress?
LOE, Budgeted milestones, units complete, 0-100, 50-50, apportioned
Calculate cubic units in a rectangle?
A rectangle has a perimeter with linear units, and a surface area with square units. It has no cubic units.
Can someone help you solve this breakeven problem The break even sales revenue for a product costing 25 per unit is 550000 If budgeted sales are 10000 units what is the margin of safety?
Break Even is when: (units x selling price) = (units x cost per unit) + Fixed Costs There is not enough information to calculate a margin of safety; however, based on the information supplied: 550,000 = (10,000 x 25) + Fixed Costs 300,000 = Fixed Costs
Can someone help me solve this breakeven problem The break-even sales revenue for a product costing 25 per unit is 550000 If budgeted sales are 10000 units what is the margin of safety?
Budgeted sales = 10000 * 25 = 250000 breakeven sales = 550000 margin of safety = 550000 - 250000 = -300000
What is the formula to calculate density and units?
Density = Mass/Volume. Conversion between units will depend on what the two units are.
How many units of insulin should a diabetic take per 4 grams of carbohydrates?
Depends on, type of insulin, body weight, age, level of activity. Not easy to answer. (ask your doctor)
