Purchase Solution

Principles of Accounting and Types of Cost

Not what you're looking for?

Ask Custom Question

Please see the attached file.

40. The graph below depicts two different types of costs. Questions related to the graph should be answered in the spaces provided.

a. The line H-B represents what type of cost? Variable cost
b. Production at point J versus point L would increase total variable costs.
Variable costs will vary with the number of production units. If the units of output is higher, the total variable costs will also get higher.
c. Production at point J versus point L would decrease per unit fixed costs.
Fixed cost will remain the same for a certain units of output within the range. However, the per unit fixed costs will be decreased if the units of output is higher.
d. What is a possible reason that line G-A increases at point A to a new horizontal line?
The factory will need more machinery and facilities to produce more units of output, resulting in higher fixed costs.
e. What kind of cost is depicted by the line from point G to point A? Fixed cost

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation to answer and fill in the spaces provided.

Solution Preview

40. The graph below depicts two different types of costs. Questions related to the graph should be answered in the spaces provided.

a. The line H-B represents what type of cost? Variable cost
b. Production at point J versus point ...

Purchase this Solution


Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.