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Why might it be misleading to show the fixed costs per unit basis?
Wiki User
∙ 9y ago
When you show fixed cost on a per unit basis, the cost of each product will be significantly higher. This will give the false impression that the price of the product will need to be high in order to make a profit.
Wiki User
∙ 9y ago
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How might a flocculating agent test be misleading on water?
the flocculating agent might have dirt or whatever from before so it can be misleading.
Is reallocation if fixed costs across divisions unethical?
An audit might point out that the fixed costs associated exclusively with one division might be properly noted in that division's accounts. For example, if the corporation made automobile axles and artisan bread, for example, the fixed costs associated with bread-making would require significant explanation of they appeared on the financial reports for axles. However, creative accounting can work miracles. The crux of your question might be 'reallocation'. Your corporate ethics officer can answer your question specifically. And often, ethics and the law are not the same.
What are misleading advertisement?
Misleading advertisement is when an Ad shows you something that might mislead you into thinking something different.
How can a firm reduce its fixed costs per units sold?
Fixed costs include rent, salaries, utilities, and other expenses that don't depend on the number of units produced. One obvious way to reduce fixed costs per unit sold would be to sell more units. Other ways might include: reducing salaries, finding a cheaper place to rent, and investing in energy-efficiency measures to reduce utility costs.
What are the three types of costs company might occur how do they differ?
1. Fixed costs. These types of costs do not vary with output in the short term. An example might be rent costs for premises. 2. Variable costs. These are costs that vary directly with output and will be business specific. A manufacturing industry making plastic widgets will see the cost of their plastic raw material vary directly with production. 3. Semi-variable costs, or 'stepped' costs. These are costs fixed over a small range of output but variable over a longer range of output particularly at certain critical levels. They may 'step-up' as with utility bills or 'step-down' as with quantity discounts. Please note that all costs are variable costs if you take a long enough time frame.
What are the important differences between fixed cost and variable costs?
Fixed costs are costs that do not change in total as the number of units increase or decrease. Examples include rent and utilities expense, manager salaries, etc. However, since the total cost does not change, the individual unit cost does change as units increase or decrease. Variable costs are costs that change in total as the number of units increase or decrease. An example might be direct labor, which increases based on number of hours work. However, total unit cost does not change.
Can you distinguish between fixed costs and variable costs?
Fixed costs are costs that will be the same for the next year. In my Construction Business fixed costs are office rent, office utilities, advertising costs, etc. In a year, these costs can be known ahead of time and won't need to change even if my company does more work. Variable costs are costs that can rise or fall depending on how much work I contract. Say I sign up 20 jobs this year, I will have to hire more employees, buy them trucks, rent them cell phones, and those costs will correspond to the amount of work going on, therefore variable.
What is the cost plus fixed fee contract?
A type of cost reimbursement contract that assigns minimal responsibility for costs and for which a fixed fee is negotiated. The fee provides an incentive for a subcontractor to contract for efforts that might otherwise pose too great a risk to it to assume.
Will grants help pay for gas and food while going to college?
The exact details of a grant may vary; you should ask for details in every case. For example, a grant might ONLY pay for the study costs, or even only part of the study costs; or it might include the entire study costs, plus a fixed monthly amount for expenses (in which case it is up to you to cover your expenses with that money, or you might have to pay a bit more from your pocket), etc.
Can I Increasingly Draw Down Business Loan With Fixed Interest Rate?
A business loan with variable rate of interest would better suit this purpose. You cannot increase the principal balance of the Business Loan having a fixed interest rate throughout the fixed rate of interest period. If several drawing is needed as the rates are fixed for time, break costs might be incurred.
What might be used to make a graph misleading?
Don't make graphs misleading!As for the answer: different scales, leaving out points, drawing extra lines with no meaning, confusing labels, ...Most graphs you see online are misleading, few are really good.
Do I have to calculate Cost of Goods Sold if the business uses the Cash acounting system?
Costs of goods sold are a type of expense and although the total may vary between the accrual and cash basis' of accounting, the method of calculating them is the same. Beginning Inventory + Purchases - Ending Inventory = Costs of Goods Sold. If you have no beginning or ending inventory (because you're using the cash basis)... you just add the purchases and applicable expenses. Some of which might be: direct materials and supplies, energy costs, freight, direct labor costs, etc.
