As the cost-driver activitylevel increases within the relevant range:
举一反三
- 中国大学MOOC:"A fixed cost is constant within the relevant range. In other words, fixed costs do not change for changes in activity that fall within the “relevant range.”";
- An analysis of past maintenance costs indicates that maintenance cost is an average of $0.40 per machine-hour at an activity level of 20,000 machine-hours and $0.50 per machine-hour at an activity level of 16,000 machine-hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 18,500 machine-hours? A: $1,600 B: $6,960 C: $8,000 D: $9,000
- An organisation manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.What is the variable cost per unit of the product?
- Which type of cost always increases immediately when output increases?
- The cost driver of an indirect cost is often used as the cost-allocation base.