Question

Consider the following items of income and expense and state: whether they bear a relationship to each other or not; if they are related in any way, in what way they should move in relation to each other; the reasons for your answer in each case:

a) Newspaper advertising income

-Number of rolls of newsprint used

-Circulation revenue

-Number of column classified advertising inches

b) Fuel costs of a bus company

-number of passengers carried

- depreciation on bus fleet

-driver wages

c) Fees of practicing accountant

-quantity of stationary purchased

-charge-out-rates

-office rental

Answer 1

a) Newspaper advertising income
-Number of rolls of newsprint used: Not related
-Circulation revenue:Directly related since as more papers circulated then there is more chance of people advertise in it
-Number of column classified advertising inches: Directly proportional

b) Fuel costs of a bus company
-number of passengers carried: Not related
- depreciation on bus fleet:It is related since as bus becomes old the performance comes down and required more fuel
-driver wages:Not related

c) Fees of practicing accountant
-quantity of stationary purchased:Not relatd
-charge-out-rates:Related
-office rental:not related