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Basically when you refer to fixed costs you are talking about expenses that remain "constant" over a longer period of time, such as a lease, and other "overhead" obligations. These fixed costs are defined as a percentage of total gross so in that case it is a percentage point which is the same as a unit. Fixed costs don't actually remain constant, but in order to run a business you need a business plan and you need to plug in the plan numbers for 12 months, based on payments that remain consistant and by using last years numbers to create a monthly average number for things like untilities. If you don't have planned numbers that are pretty solid you need to make adjustments throughout the year to keep them as close to plan as possible. Otherwise your overhead can eat up the money you need for inventory, which is where the profit margin comes from to pay for everything and give you an ROI that is viable.
What else can I help you with?
What is a cost which remains constant in total regardless of the change in the activity leve but on a per unit basis it varies with the level of activity is called a?
This type of cost is known as a fixed cost. Fixed costs remain constant in total regardless of changes in the level of activity, such as rent or salaries. However, when expressed on a per unit basis, these costs vary inversely with the activity level; as production increases, the fixed cost per unit decreases, and vice versa.
What production costs if expressed on a per unit basis would be most likely to change significantly as the production level varies?
fixed manufacturing overhead.
Variable cost fluctuates in total as activity changes but remains constant on a per unit basis over the relevant range true or false?
true
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
When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
What is a cost which remains constant in total regardless of the change in the activity leve but on a per unit basis it varies with the level of activity is called a?
This type of cost is known as a fixed cost. Fixed costs remain constant in total regardless of changes in the level of activity, such as rent or salaries. However, when expressed on a per unit basis, these costs vary inversely with the activity level; as production increases, the fixed cost per unit decreases, and vice versa.
What production costs if expressed on a per unit basis would be most likely to change significantly as the production level varies?
fixed manufacturing overhead.
Variable cost fluctuates in total as activity changes but remains constant on a per unit basis over the relevant range true or false?
true
What is the meaning of permanent home address?
A permanent home address refers to the fixed residential location where an individual resides on a long-term basis. It is often used for official purposes, such as legal documents, identification, and governmental correspondence. This address typically remains constant even if the person temporarily relocates for work, school, or other reasons.
What are the similarities between wages and salaries?
A WAGE is a regular payment earned for work or services, typically paid on a daily or weekly basis. A SALARY fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee.
What is a bond's face value or maturity value known as?
A bond's face value, also known as its par value or maturity value, is the amount that the issuer agrees to pay the bondholder at maturity. This value is typically set at issuance and remains constant throughout the bond's life. It is also the basis for calculating interest payments, which are often expressed as a percentage of the face value.
Can you explain what the coupon rate is on CDs?
The coupon rate on CDs is the fixed interest rate that the issuer pays to the investor. It is expressed as a percentage of the CD's face value and is paid out regularly, typically on a monthly or quarterly basis.
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
Which thing always remains constant inside a conducting sphere?
An electric charge cannot be established or maintained inside a conductive container. This is the basis of the Faraday Cage, used to isolate a working space from electric fields.
The employee contributions to medicare are limited on an annual basis?
Employee and employer Medicare contributions are fixed on an annual basis.
Is dog poop detrimental if inhaled on a constant basis?
Yes.
Is the salary of a lecturer a fixed or variable cost?
If salary is on per lecture basis then it is variable cost otherwise it is fixed cost.
