Case Writing Assignment For Managerial Accounting

Costs
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Costs
Considering that the tattoo artistes are paid a commission that is 50% of the total amount that the customers pay for the tattoos. This can be considered as a variable cost. Ideally, the element of cost is going to vary relative to the cost of the tattoo. While the artistes are going to be paid 50% of the paid amounts from the customers, different tattoos cost different prices. This means that the cost of every other tattoo is going to vary greatly. It can thus not be considered to be fixed given the varying costs of the different tattoos designs (Peavler, 2017).
The cost of the robot at the studio is fixed. This is relative to the fact that, the cost of running the robot is fixed. Regardless of the number of customers the robot serves the costs is still going to be the same. This is in reference to the cost of running the robot (Peavler, 2017). At the same time the robot is going to have a fixed cost when it comes to the repairs and maintenance. Much like other machines, after a number of hours there are parts that will have to replaced and there elements of service that are supposed to be carried out. Whether the robots reaches that many number of hours on the first day or the last day of the month. The total operational cost is going to be the same.
The operational risks associated with the robot are quite high when compared to the human artistes. This is relative to the fact that, the robot relies on the computer program to operate. Computer programs are designed to work under certain conditions. As such, whe...