Discuss the Cost- Volume- Profit assumptions and its importance to the business organization in profit planning.

Q: Contribution margin ratio definition and how is useful in planning business operations?

A: Solution:- Contribution margin ratio definition as follows:-

Q: Why is cost estimation an important function in managerial accounting?

A: Cost estimation involves predicting the cost to be incurred for the production of goods and services…

Q: Explain an example of profit oriented companies.

A:

Q: a. Business decisions rely on certain characteristics which are based on intelligent and…

A: Hi student, you have asked multiple non-related questions in one go which is not appropriate. So,…

Q: Which statement below best describes a profit center?a. The authority to make decisions affecting…

A: Answer c. The authority to make decisions over the most significant costs of operations, including…

Q: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business…

Q: Discuss how an organizationmight evaluate potential investment opportunities to ensure that…

A: Investments are projects undertaken by a company that impacts an organization significantly.…

Q: A profit center manager often also supervises revenue and cost center managers. True or False True…

A: Solution 1: True, A profit center manager often also supervise revenue and cost center manager…

Q: Discuss the role of profit plan in implementing strategy.

A: Strategy: It is a plan of action that is framed to achieve the organizational overall goals.

Q: Give an example business and explain how you will apply methods/ approach below for the success of…

A: Market value approach of determination of the capital will be based on current market price of the…

Q: ow important profit center in managerial accounting

A: Profit Center - Profit Center is the individual unit operating independently from the main branch or…

Q: What is the meaning of contribution margin ratio? How is this ratio useful in planning…

A:

Q: Managerial accounting is an activity that helps managers determine the costs of an organization's…

A: Managerial accounting is a process of analysing financial data , make  interpretation of that data…

Q: How cost accounting is useful for external user as Government ,and customer etc.support your answer…

A: Cost accounting system is a framework that guides the firm to calculate their cost and helps in…

Q: What level of importance do product costs play in the business process? what kind of management…

A: Product cost: Cost incurred to produce a product is called product cost. It includes the cost of…

Q: Discuss how an organization might evaluate potential investment opportunities to ensure that…

A: The question is based on the concept of capital budgeting techniques, to ascertain the true worth of…

Q: Compute profit margin and describe its use in analyzing company performance.

A: Profit margin indicates how many cents of profit generated for each dollar of sale. It measures the…

Q: Why management accounting practices is important in conducting turnaround program?

A: Accounting is a science of keeping the business record in a regular and most systematic manner, so…

Q: What is the relationship between contribution margin and responsibility margin? Explain how each of…

A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…

Q: When conducting a cost-volume-profit analysis determine where the most challenges for accountant…

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…

Q: Discuss the relationship between profit and ethics.

A: Ethics:   Ethics is the set of moral principles. It affects the behavior, mentality, etc. of a…

Q: List the advantages and disadvantages of different types of business. Explain the various costs…

A: Business organization refers to the formation of an entity with an objective to have higher profits…

Q: Differentiate between a profit center and an investment center.

A: Responsibility center: A responsibility center is a department or unit of a corporation in which…

Q: Name a firm or organization you know of that you are reasonably sure uses cost management andexplain…

A: Cost Management: Cost management involves the development and use of cost management information…

Q: Explain the meaning of customer value. How is focusing accounting? on customer value changing…

A: Customer Value: Customer value is the ratio between the supposed benefits of customer and the…

Q: Identify and discuss arguments that individual product managers may put forward to support their…

A: Preferred Revenue Allocation method is a revenue allocation method in which managers in charge of…

Q: How cost accounting is useful for external user as Government ,and customer etc,support your answer…

A: Cost accounting gives complete details of the cost incurred in the manufacturing of the product and…

Q: How investment center important in managerial accounting

A: The process of using the financial information the entities' managers in order to make decisions is…

Q: What is an operational productivity measure and a financial measure?

A:

Q: Explain the meaning of customer value. How is focusing on customer value changing managerial…

A: Customer value: The customers play a wider role in the business. The major business transactions…

Q: How is cost-volume-profit analysis different from profit planning?

A: Cost Volume Profit Analysis - This is an Analysis which provides the details How it will Effect the…

Q: Match each of the following type of responsibility centers with what all they are accountable for.…

A: Responsibility Center: A business segment whose managers are responsible or accountable for certain…

Q: Define profit oriented company.

A: Profit Oriented Company Profit oriented company are refer as the company which main aim is to earn…

Q: Discuss The impact of applying an Activity-Based Costing System on the businesses' financial and…

A: What is Activity-Based Costing? Activity-based costing ABC is a method for assigning costs to…

Q: Why is customer-profitability analysis an important topic to managers?

A: Customer profitability analysis helps management in allocating profitability to each customer, but…

Q: Why does the balanced scorecard include financial performance measures as well as measures of how…

A: Balanced Score Card: Balanced Score Card is a tool used for determining the impact of the major…

Q: Which statement below best describes an investment center? a. The authority to make decisions…

A: Definition: Responsibility center: The departments of the organization are generally referred to as…

Q: Distinguish between a profit center and an investment center. Draw a diagram illustrating the…

A:

Q: What is the aim of dividing businesses into departments for the purpose of controlling management?…

A: The Answer:

Q: What is the relationship between the value chain and management accounting?

A: Managerial accounting refers to the practice of recognizing, estimating, breaking down, deciphering,…

Q: How do organizations use pay for performance to motivate managers?

A:

Q: Which of the following key decisions is a financial manager likely to make? A. Manage the promotion…

A: Financial managers are responsible for the financial health of an organization.