On the Crossover Chart Where the Costs of Two or More

question 2

Multiple Choice

On the crossover chart where the costs of two or more location alternatives have been plotted,the quantity at which two cost curves cross is the quantity at which:

• A)fixed costs are equal for two alternative locations.
• B)variable costs are equal for two alternative locations.
• C)total costs are equal for all alternative locations.
• D)fixed costs equal variable costs for one location.
• E)total costs are equal for two alternative locations.

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Definitions:

Income Summary

A temporary account used in accounting to summarize all income and expenses for a period, closing the books and preparing them for the next period.

Beginning Inventories

The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.

Ending Inventories

The worth of merchandise ready for purchase at the conclusion of a financial period.

Interest Expense

Costs incurred by a borrower for the use of borrowed money, typically paid as a rate on loans or debt.