Pick one of the questions below. Explain your reponse in a paragraph or two.
1. Name and describe four cost behavior patterns.
2. Describe two methods of determining the fixed and variable components of mixed costs.
3. What is meant by the term break-even point? What are two ways in which the break-even point can be expressed?
4. Why might a business wish to lower its break-even point? How would it go about lowering the break-even point?
5. What effect would you expect the mechanization and automation of production processes to have on the break-even point?
6. Assume your college is considering hiring a lecturer to teach a special class in communication skills. Identify at least two costs that college administrators might consider in deciding whether to hire the lecturer and add the class.
7. Two enterprising students are considering renting space and opening a class video recording service. They would hire camera operators to record large introductory classes. The students taking the classes would be charged a fee to rent and view the video on their laptops or smart phones. Identify as many costs of this business as you can and indicate which would be variable and which would be fixed.
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Cost Volume Profit Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0
1. Name and describe four cost behavior patterns.
2. Describe two methods of determining the fixed and variable components of mixed costs.
3. What is meant by the term break-even point? What are two ways in which the break-even point can be expressed?
4. Why might a business wish to lower its break-even point? How would it go about lowering the break-even point?
5. What effect would you expect the mechanization and automation of production processes to have on the break-even point?
6. Assume your college is considering hiring a lecturer to teach a special class in communication skills. Identify at least two costs that college administrators might consider in deciding whether to hire the lecturer and add the class.
7. Two enterprising students are considering renting space and opening a class video recording service. They would hire camera operators to record large introductory classes. The students taking the classes would be charged a fee to rent and view the video on their laptops or smart phones. Identify as many costs of this business as you can and indicate which would be variable and which would be fixed.
Licenses and Attributions CC licensed content, Shared previously
Accounting Principles: A Business Perspective. Authored by: James Don Edwards, University of Georgia & Roger H. Hermanson, Georgia State University. Provided by: Endeavour International Corporation. Project: The Global Text Project. License: CC BY: Attribution
"Cost Volume Profit Essay Questions" by Gary E. Ford, ACCT 102 Principles of Accounting, Tompkins Cortland Community College is licensed under CC BY 4.0