Which of the Following Is the Correct Equation for Total

question 57

Multiple Choice

Which of the following is the correct equation for total mixed costs under the linearity assumption?

• A)Total Fixed Costs + (Variable Cost per Unit × Units of Activity)
• B)Total Variable Costs + (Fixed Cost per Unit × Units of Activity)
• C)(Total Fixed Costs × Units of Activity)+ Total Variable Costs
• D)(Total Fixed Costs × Units of Activity)+ (Total Variable Costs × Units of Activity)

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Definitions:

Salvage Value

An asset's remaining worth estimated at the conclusion of its life of use.

Book Value

Book value is the net value of a company's assets found on its balance sheet, and it is calculated by subtracting liabilities from the total value of assets.

Double-declining-balance

An accelerated method of depreciation which doubles the normal depreciation rate, reducing the asset's book value more quickly.

Salvage Value

The forecasted price an asset will fetch at the time of sale once its period of usefulness is over.