ACTG 2010 : Chapter 6 Tutorial Solution.pdf
Document Summary
[this question involves identifying cost behaviour, applying the high-low method to estimate fixed and variable costs for specific cost items, and forecasting total costs to use in a pricing decision for a service organization. ] Fonseca, ruiz, and dunn is a large, local accounting firm that is located in hamilton, on. Carlos ruiz, one if the firm"s founders, appreciates the success his firm has enjoyed and wants to give something back to his community. He believes that an inexpensive accounting-services clinic could provide basic accounting services for small unincorporated businesses. He wants to price the services at cost. Since the clinic is brand new, it has no experience to go on. Carlos decides to operate the clinic for two months before determining how much to charge per hour on an ongoing basis. As a temporary measure, the clinic adopted an hourly charge of , half the amount charged by the firm for professional services.
