Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 2

The following data is provided by the U.S. Department of Agriculture (USDA) regarding the cost of soybean production in the U.S. Heartland (Minnesota, Iowa, South Dakota, Indiana, and Illinois and parts of Ohio, Missouri, Nebraska, and Kentucky) and the Mato Grosso region in western Brazil. The data is used to analyze the cost competitiveness of soybean production in the United States and Brazil.

REQUIRED:

What can you learn from the information below about the cost competitiveness of the United States and Brazil in soybean production?

Step 1 of 2

Fixed costs are those costs which does not changes with change in level of production. Variable costs are those costs which changes with change in level of production. The sum of fixed and variable costs is total cost for the company.