Purchase Solution

Context sensitive nature of cost behavior classifications

Not what you're looking for?

Ask Custom Question

1. Context sensitive nature of cost behavior classifications

Pacific Bank's startup division establishes new branch banks. Each branch opens with three tellers. Total teller cost $90,000 per yr. The 3 combined process up to 90,000 transactions per year. If a branch doesn't attain at least 60,000 transactions during the 1st yr; it is closed. If demand exceeds 90,000, additional tellers are hired, branch is transferred from start-up to regular operation.
What is the relevant range of activity for new branch banks?
Determine amt of teller cost for a branch that process 60,000, 70,000, 80,000, or 90,000 transactions. Is the teller cost a fixed or a variable cost?
Determine amount of teller in total and teller cost per branch, assuming the startup is operates 10,20,15, 25 branches. In this case is the teller cost fixed or variable?

Note: Complete assignments in excel only.

Purchase this Solution
Solution Preview

1. Context sensitive nature of cost behavior classifications

Pacific Bank's startup division establishes new branch banks. Each branch opens with three tellers. Total teller cost $90,000 per yr. The 3 combined process up to 90,000 transactions per year. If a branch doesn't attain ...

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

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

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Basics of corporate finance

These questions will test you on your knowledge of finance.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • High-low method of cost estimation

    222353 High-low method of cost estimation 1. The three most common cost behavior classifications are _________.

  • Tools For a Captital Budget Analysis

    This solutions will provide you with practical tools for analysis and classifications of capital budgets.

  • Consumption behaviors in art and cultural sectors for developing

    In this thought/context, the main point is that the base of comparison of two things should be the same and the comparison should be made based on an in-depth analysis of behavior of cost and nature of revenues of the two products.

  • Examples of Normal and Abnormal Behaviors

    Can you think of other normal and abnormal behaviors? FINAL COMMENTS I HOPE THIS HELPS AND TAKE CARE. BEST OF LUCK! Provides examples of normal and abnormal behaviors and reasons for the classifications..

  • Cost Accounting

    source: http://www.prosci.com/abc1.htm Estimating cost behavior or cost estimation: Cost Estimation is the attempt to measure a past cost relationship between costs and the level of an activity.

  • Groups & Membership Responsibilities

    There are 3 classifications of social groups -primary, secondary and referential. It is this groups that make up society. ?

  • Cost classification and estimating costs

    253114 Cost classification, estimating costs based on behavior petterns, understanding CVP relationships 12.2 Cost classifications.

  • The Role of Motivation in Buying Behavior

    In the given research context, research problem indicates the interest of researcher that supports him to define the nature of collected data (Bogdana, Felicia & Delia, 2009).

  • How much influence does culture have on consumer behavior?

    Similarly, consumers in certain countries are more price sensitive in nature due to their cultural roots and values as compared to consumers in other countries where purchase behavior is not motivated enough via price discounts.

View More Related Solutions