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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 43
Basic Concepts
The following data apply to the provision of psychological testing services.
Required
Give the amount for each of the following (one unit = one test):
a. Variable production cost per unit.
b. Variable cost per unit.
c. Full cost per unit.
d. Full absorption cost per unit.
e. Prime cost per unit.
f. Conversion cost per unit.
g. Contribution margin per unit.
h. Gross margin per unit.
i. Suppose the number of units decreases to 400 tests per month, which is within the relevant range. Which parts of (a) through (h) will change For each amount that will change, give the new amount for a volume of 400 tests.
The following data apply to the provision of psychological testing services.
Required
Give the amount for each of the following (one unit = one test):
a. Variable production cost per unit.
b. Variable cost per unit.
c. Full cost per unit.
d. Full absorption cost per unit.
e. Prime cost per unit.
f. Conversion cost per unit.
g. Contribution margin per unit.
h. Gross margin per unit.
i. Suppose the number of units decreases to 400 tests per month, which is within the relevant range. Which parts of (a) through (h) will change For each amount that will change, give the new amount for a volume of 400 tests.
Explanation
Verified
Verified
a.
Calculate variable production cost p...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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