Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hello, i have a technical question about managemen

hello, I have a technical question about management accounting, specifically what to include when calculating...

50.1K

Verified Solution

Question

Accounting

hello, I have a technical question about management accounting, specifically what to include when calculating the fixed cost in order to find the break even point. let's say a company X wants to start a new project, with an operation life of "b years". usually, when calculating fixed costs, one should include everything that does not change with respect of the value of output/sales, such as rent, bills, insurance etc.. however, if the company X pays the full lease of "b years" BEFORE THE OPERATIONS COMMENCE, how would we include the amount paid in the calculation of the fixed costs ?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

How does accounting for a governmental unit differ fromaccounting for a for-profit corporation? Choose...

Accounting
1.2K views

Congress uses the tax code to influence our behavior. Examplesinclude deductions for mortgage interest...

Biology
1.2K views

Explain how living organisms have changed the atmosphere over Earth’s history.

Physics
1.2K views

are projected horizontally with same speed v as shown in figure At the time when...

Basic Math
1.2K views

The matrix associated with the solution to a system of linear equations in x y...

Accounting
1.2K views

Requirement 3. Report ending inventory, sales, cost of goods sold, and gross profit on the...

Accounting
1.2K views

The MoMi Corporation's income before interest, depreciation and taxes, was $2.5 milion in the year...

Accounting
1.2K views

Discuss the importance of Zakat from an economic point of view. (2 Marks). Your...

Accounting
1.2K views

Henleigh Hill, CFO of HH Corp., uses a decentralized company processing center for check collection....

Accounting
1.2K views

Briefly describe an organization with which you are familiar. Describe a situation when a manager...

Accounting
1.2K views

29. Phillip and Naydeen Rivers are married with two dependent children. The family has household...

Accounting
1.2K views

Parent plc acquired 80% of the ordinary share capital of Subsidiary plc on 1 January...