Essay
Total revenues for the month were $80,000. Total fixed costs were $40,000. Total variable costs were $20,000.
a)Write the algebraic expression for the cost function.
b)Describe the general assumptions of the cost function.
c)Discuss reasons why a cost function might provide poor estimates of future costs.
Correct Answer:
Verified
a)TC = $40,000 + $20,000/$80,000 x total...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q13: The best source for determining historical costs
Q43: The total cost of salaries of production
Q47: Fixed costs:<br>A) Do not vary in total
Q56: Preparing a scatter plot is a requirement
Q83: The high-low method is a specific application
Q93: A cost function estimated using regression analysis
Q95: Discretionary costs reflect:<br>A) The costs that managers
Q118: Learning curves lead to greater productivity over
Q119: A regression of total selling expenses against
Q124: A firm's production is expected to show