# Cost Accounting

Submitted By lsmedley
Words 650
Pages 3
ACCT552
Week 1 Homework Assignment
LaTasha Smedley

Please complete the below problems and submit your answers in the Week 1 Dropbox. See "Syllabus/Due Dates for Assignments & Exams" for due date information. 1. You are on a tight budget and need to decide among the following 3 texting plans:
Plan A: Pay \$0.10 per text
Plan B: Pay a fixed monthly fee of \$15 for up to 500 texts per month and \$0.08 for each text over the 500.
Plan C: Pay a fixed monthly fee of \$25 for up to 1,000 texts per month and \$0.05 for each text over the 1,000. Requirements a. Draw a graph of the total monthly cost of the three plans for different levels of texting. b. Which plan should you choose if you expect to make: i. 240 texts per month? ii. 780 texts per month? iii. 1,250 texts per month?
a.
Number of Texts | Plan A: \$0.10/text | Plan B: \$15 for 500 texts and \$0.08 for each text over 500 | Plan C: \$25 for 1000 texts and \$0.05 for each text 1000 | 240 | \$24.00 | \$15.00 | \$25.00 | 780 | \$78.00 | \$37.40 | \$25.00 | 1250 | \$125.00 | \$75.00 | \$37.50 |

b. i. 240 texts per months Plan A: \$0.10 x 240 = \$24.00 Plan B: \$15.00
I would choose plan b because its less expensive than plan a or c. ii. 780 texts per month Plan A: \$0.10 x 780 = \$78.00 Plan B: 15 + ((780-500) x \$0.08) 15 + \$22.40 = \$37.40 Plan C: \$25.00
I would choose plan c because its less expensive than the other 2. iii. 1,250 texts per month Plan A: \$0.10 x 1250 = \$125.00 Plan B: 15 + ((1250-500) x \$0.08) 15 + \$60 = \$75.00 Plan C: 25 + ((1250 – 1000) x \$0.05 25 + \$12.50 = \$37.50
I would choose plan c because its less expensive than the other 2. 2. In 3–4 sentences, define the following terms and give two examples of each: c. Direct Materials Cost
The direct materials and the materials that can be traced...

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