**Discussion Question 1_01**

**Instructions**

Upon completion of the Required Readings, write a thorough, well-planned narrative answer to the following discussion question. Rely on your Required Readings and the Lecture and Research Update for specific information to answer the discussion question, but turn to your original thoughts when asked to apply, evaluate, analyze, or synthesize the information. Your Discussion Question responses should be both grammatically and mechanically correct and formatted in the same fashion as the questions themselves. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your responses and document them in a bibliography using APA style.

Chapters 2 and 3 introduce you to basic cost behavior, cost-volume relationships, and ways to measure cost behavior. Based on these readings, perform the following. (25 points) (A 1½-page response is required.)

- Complete a solution set for Fundamental Assignment Material – Exercise 2-A1, “Cost-Volume-Profits and Vending Machines” (p. 66). Be sure to show or explain how you arrive at each answer.
- Complete the Cognitive Exercises 3-25, 3-26, 3-27, and 3-28 (p. 113).

3-25 Mixed Costs And The Sales Force

Wysocki Company Pays Its Sales Force A Fixed Salary Plus A 5 Commission On All Sales Explain Why Sales Force Costs Would Be Considered A Mixed Cost

3-26 Committed and Discretionary fixed costs in manufacturing

Among the fixed cost of Howarth company are depreciation and research and development (R&D). Using these two costs as examples, explain the difference between committed and discretionary fixed costs.

3-27 Cost Functions and Decision Making

Why is it important that decision makers in corporation know the cost function for producing the companies’ products?

3-28 Statistical Analysis and Cost Functions

What advantages does using regression analysis have over the visual-fit method for determining costs functions?

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