Operating profits move in the same direction as sales when variable costing is used if selling prices, the sales mix and the cost structure remain the same TRUE FALSE
Q: nded c -ments
A: Loan amount was paid every month and interest rate compounded quarterly with making end of every…
Q: Determine the amount to be paid in full settlement of each of the following invoices, assuming that…
A: As per the guidelines, only three subparts are allowed to be solved. Please resubmit the questions…
Q: Why is preparation of the government-wide statements considered to be "challenging"?
A: Government accounting seems to be a systematic technique for gathering, categorizing, documenting,…
Q: elghted Average Cost Method with Perpetual Inventory ne beginning inventory for Midnight Supplies…
A:
Q: Delaney Company is considering replacing equipment that originally cost $600,000 and has accumulated…
A: Sunk cost is the cost that has already been incurred and that does not affect the future course of…
Q: MC37 March Corporation bought Patent A for P40,000 and Patent B for P60,000. March also paid…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: [Page-89] Wembley Travel Agency specializes in flights between Los Angeles and London. Its books…
A: A breakeven point seems to be a term that is used in many different fields of business as well as…
Q: The following information was taken from the accounting records of Light Tool Corporation. Work in…
A: The total manufacturing costs comprises of beginning work in process, direct materials cost, direct…
Q: Grey Grig Ltd Trial Balance as at 30 June 2019 Particulars Equipment rental Insurance Lighting and…
A: Formula: Net income = Total Revenues - Total Expenses
Q: Which of the following should be included as part of outstanding checks in preparing bank…
A: An outstanding check is something that has been issued but has not been cashed-deposited by the bank…
Q: Prepare the journal entries to record the following transactions, in the books of Holman Dress…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: wing information applies to the questions displayed below.] rporated her sole proprietorship by…
A: Sole proprietorship is a form a business ownership in which a single individual carries out business…
Q: Calculate the Horizontal (Trend) Analysis and horizontal analysis % change for the year 2020, 2019,…
A:
Q: Chan Company received a bill totaling $3,700 for machine parts used in maintaining factory…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Folsom Advertising, Inc. is considering an investment in a new information system. The newsystem…
A: The Payback Period indicates how long it would take a company to repay investment. This form of…
Q: Fondren Machine Tools has total assets of $3,180,000 and current assets of $882,000. It turns over…
A: Solution Equity = Assets - Debt. = 3180000-1410000. = 1770000. Fixed…
Q: Kite Company sells magazine subscriptions of one to three-year periods. Cash receipts from…
A: The Magazine subscription revenue is calculated using the following formula:- Subcription Revenue…
Q: the financial year to June 30, 2021, HiFi Ltd issued options for 400,00 riod, the average fair value…
A: BEPS To calculate Basic earnings per share, divide the net profit or loss attributable to equity…
Q: Calculate the horizontal (trend) analysis, and horizontal % change for 2020, 2019, 2018 in excel.…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Compal Lid. acquired the whole of the Star Ltd. Sun Ltd. Rs. Assets Star Ltd Sun Ltd. Rs.…
A: When a company acquires all the shares of another company, the latter company becomes a wholly-owned…
Q: What are some major adjustments required when converting from fund financial statements to…
A: major adjustment for converting from fund financial statements to government-wide statements are…
Q: ts payable $ 50,500 Accounts receiva
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities.…
A:
Q: Units sold = 8700 games units Selling price per unit = $ 69 Variable expenses = $ 49 Fixed expenses…
A: Formula: Net income = Total Revenues - Total Expenses
Q: Required Informatlon Problem 25-49 (LO 25-2) (Algo) [The following Information applies to the…
A: Casey made a taxable gift = of $7.4 million each to both Stephanie and Linda. Total gift value =…
Q: What role does a corporation audited financial statements Play in determining it's taxable income?
A: Whatever financial statement that has already been audited by a certified public accountant (CPA) is…
Q: Using the following information: a. The bank statement balance is $3,351. b. The cash account…
A: Bank reconciliation is the method of validating all cash account balances in an entity's accounting…
Q: Dan receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is…
A: Given: Basis of the duplex land - $110,000 Fair market value (FMV) of land & building -…
Q: Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $300,000 before any…
A: 1. Office furniture belongs to 7 year, 200% class. Also in the year of purchase, half year…
Q: Management believes it can sell a new product for $6.50. The fixed costs of production are estimated…
A: a )Given that: Selling price= $6.50. Fixed costs of production= $5,500, and the Variable costs =…
Q: On January 1, 2010, Skyline Limousine Co. purchased a limo at an acquisition cost of $28,000. The…
A: Gain (loss) on disposal of assets = Sale value - Net book value of the assets Net book value of the…
Q: What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning…
A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…
Q: Dawson Toys, Limted, produces a toy called the Maze. The company has recently created a standard…
A: Variance analysis is a method of determining the disparity between expected and actual statistics.…
Q: XYZ Company's policy for the purchases of any asset over the value of $3,000 requires the purchasing…
A: Solution concept There are various internal control put in place by the organization for prevention…
Q: The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K):…
A: Intersegment Sales as a % of Total Sales=Intersegment salesTotal sales×100
Q: QUESTION TWo The following information relates to the business of Top End Enterprise for the month…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: 7 On January 1, P2,500,000 for life of 5 years expected that would total PE
A: Amortization refers to writing off of an intangible asset over a specific time period.
Q: Current Year Current Year Prior Year Prior Year Amount Percent Amount Percent Revenues: fill in the…
A: Formula: Current year percent : Admission percent = ( Admission value / Total Revenues ) x 100
Q: We-Sell Realty was organized as a corporation on August 1, 20Y7, by the issuance of common stock of…
A: The errors are listed as,
Q: During the past year, a company had cash flow to stockholders, an operating cash flow, and net…
A: Cash flow to creditors = Operating cash flow - change in working capital - Net capital spending -…
Q: The following information has been extracted from the records of Marie Company about one of its…
A: Inventory methods: Inventory methods are the accounting techniques applied by manufacturing entities…
Q: GG Merchandise has two producing and two service departments labeled P1, P2, S1 and S2,…
A:
Q: r. 2 Purchased merchandise on account from Dakota Supply Co. $6,900, ter 4 Sold merchandise on…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: d. Depreciation of machinery and equipment, $4,100. e. The factory overhead rate is $40 per machine…
A: The Journal keeps the record of day to day transactions of the business. The direct costs incurred…
Q: 6. LABAN LANG Company adds materials at the beginning of the process in the AAA Department, which is…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Zachary Company manufactures molded candles that are finished by hand. The company developed the…
A: Variance analysis is conducted to determine the variation or difference between budgeted target and…
Q: Explain the impact of following business decisions on financial statements (on five accounts –…
A: A double-entry bookkeeping system seems to be one in which a corresponding entry, i.e. debits as…
Q: a. The Co. can increase unit sales from 500 to 540 by increasing the monthly advertising budget by…
A: The marginal cost process is based on the difference between product costs and period costs. Only…
Q: On March 18, 2021, Nicanor consulted you on the sale of his principal residence located in Recto,…
A: Capital gain tax is calculated on principal residence @ 6% of the highest value of the propety . It…
Q: Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Method The following…
A: The question is based on the concept of Financial Accounting.
Step by step
Solved in 3 steps
- The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves a. margin of safety. b. unit contribution margin. c. degree of operating leverage. d. sensitivity analysis. e. variable cost reduction.In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense line represents which of the following? Multiple Choice The break-even point The total fixed expenses The total variable expenses The total contribution marginThe cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some costs vary inversely with volume. Production will equal sales. Costs are linear and continuous over the relevant range. Price will remain fixed.
- TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.A Cost-Volume-Profit graph contains an "Area of Loss" and an "Area ofProfitability". Which of the following best explains the difference between thetwo points on the graph? A. The area of loss represents the difference between Sales and Variable Cost.B. The area of loss begins with the concept that fixed costs have to be recovered priorto sales contributing to profit.C. The area of profit represents the difference between Sales and Variable Cost.D. The area of profit begins with the concept that no company would have any level ofsales below the break-even point.Contribution margin is a.the same as sales revenue b.the excess of sales over variable costs c.another term for volume in the "cost-volume-profit" analysis d.profit
- Cost-volume-profit analysis is used to make many decisions, including product pricing and controlling costs. How does good operating leverage magnify earnings results with modest revenue increase?Which of the following is not an assumption underlying cost-volume-profit analysis?a. The sales mix is constant.b. The break-even point will be passed during the period.c. Total sales and total costs can be represented by straight lines.d. Costs can be accurately divided into fixed and variable components.Select the correct statement concerning the below cost-volume-profit graph: Line E A O d. O e. O a. None b. At point B, profits equal total costs. O c. Line E is the total sales line. d. Line F is the Total sales line. e. The point identified by "B" is the breakeven point. The break-even point is where B Line F Oa. None O b. total sales equal total fixed costs. O c. total variable costs equal total fixed costs. total sales equal total variable costs. Line D contribution margin ratio equals total fixed costs. O a. 190 000 b. None OC. 0.73 22 The following monthly data are available for Lumberyard Company which produces only one product: Break-even level in sales of dollars: $530 000 Budgeted sales in dollars for the month of June: $720 000 d. 1 250 000 e. 1.35 How much is the margin of safety for the company for June?
- Contribution margin is Oa. profit Ob. the excess of sales over variable costs Oc. Oc. another term for volume in the "cost-volume-profit" analysis Od. the same as sales revenueWhich of the following is not an assumption underlying cost-volume-profit analysis? a.The break-even point will be passed during the period. b.Total sales and total costs can be represented by straight lines. c.Costs can be accurately divided into fixed and variable components. d.The sales mix is constant.1. Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on profits analyzing the effects of changes in volume on profits determining selling price All of these choices are correct. 2. Contribution margin is the ________. difference between sales and fixed costs difference between sales and total costs difference between sales and variable costs None of these choices are correct.