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jtfortwengler jtfortwengler
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2 months ago
To calculate the unit cost of the Neoprene stocking foot waders he sells, Gary Guinn added up all his costs and divided by the number of waders he sold during the year. He then used this unit cost to estimate total costs for the coming year. Explain why Gary's method is not useful in predicting total costs for the coming year.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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heathernhullheathernhull
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Gary did not consider what portion of his total cost is fixed versus variable. Gary should analyze his total cost to estimate the variable cost per unit and total fixed cost and then apply these amounts to his estimated sales for the coming year.
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jtfortwengler Author
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2 months ago
Thanks for your help!!
linlinlin
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This calls for a celebration Person Raising Both Hands in Celebration
riptide
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2 hours ago
this is exactly what I needed
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