ACCT 3221 STUDY GUIDE WITH
COMPLETE SOLUTIONS
What is a variable cost? - Answer- The cost that changes in total in proportion to the
activity or volume.
How does the total cost of variable cost change with volume? - Answer- The total cost
changes with volume, but the cost per unit remains the same.
What is a fixed cost? - Answer- A cost that remains the same in total regardless of
changes in activity or volume.
How does the cost per unit change for fixed costs? - Answer- The cost per unit changes
based on the volume or activity levels, while the total cost remains constant.
What is the relevant range? - Answer- The range over which cost relationships remain
valid
What is the relevant range related to capacity? - Answer- The volume or activity that
can be sustained without increasing capacity
MANAGERS - Answer- they Maximize the value of organization decisions from the best
available information.
ACCOUNTING INFO
CUSOTOMER TASTE - Answer- -->ACCOUNTING SYSTEM
-->SERVEY CUSTOMER FEEDBACK
RESEARCH AND DEVELOPMENT - Answer- scientist salaries, beakers and
volumentic flask
design of product and processes - Answer- engineer salaries, CAD program
subscription
production - Answer- assembly wages, factory rent, power
markerting - Answer- TV Ads, Bill boards, Markerting salaries
COMPLETE SOLUTIONS
What is a variable cost? - Answer- The cost that changes in total in proportion to the
activity or volume.
How does the total cost of variable cost change with volume? - Answer- The total cost
changes with volume, but the cost per unit remains the same.
What is a fixed cost? - Answer- A cost that remains the same in total regardless of
changes in activity or volume.
How does the cost per unit change for fixed costs? - Answer- The cost per unit changes
based on the volume or activity levels, while the total cost remains constant.
What is the relevant range? - Answer- The range over which cost relationships remain
valid
What is the relevant range related to capacity? - Answer- The volume or activity that
can be sustained without increasing capacity
MANAGERS - Answer- they Maximize the value of organization decisions from the best
available information.
ACCOUNTING INFO
CUSOTOMER TASTE - Answer- -->ACCOUNTING SYSTEM
-->SERVEY CUSTOMER FEEDBACK
RESEARCH AND DEVELOPMENT - Answer- scientist salaries, beakers and
volumentic flask
design of product and processes - Answer- engineer salaries, CAD program
subscription
production - Answer- assembly wages, factory rent, power
markerting - Answer- TV Ads, Bill boards, Markerting salaries
