Which of the following can be considered a risk in CVP analysis?
Q: xplain the impact of risk, uncertainty, and changing variables on cost-volume-profit analysis.
A: Cost-volume-profit analysis is one of the decision accounting analytical approaches that aid in…
Q: What are the optimal prices and profits for pure bundling.
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: analysis? What are identified as possible risks associated with cost
A: Definition: A technique for calculating the costs related to a business prospect or proposal, as…
Q: Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on…
A: SOLUTION- CVP ANALYSIS IS USED TO DETERMINE HOW CHANGES IN COSTS AND VOLUME EFFECTS A COMPANY'S…
Q: Explain in details what is SWOT analysis. Do SWOT (Strength, Weaknesses, Opportunities, Threats)…
A: SWOT Analysis is basically a parameter by which an organization can judge what is its Competitive…
Q: You need to briefly describe the “Margin of Safety”. Do companies typically want to maximize or…
A: The margin of Safety - MOS is the difference between actual sales and break-even sales. The margin…
Q: What is the biggest disadvantage of using ROI to evaluate investment centers?
A: Return on Investment: Under return on Investment, the investment opportunity with the highest rate…
Q: What is the initial cost of setting up the "stop-loss" strategy?
A: The Stop-loss strategy is very useful which helps the investors to protect in the market, as the…
Q: In a make versus buy decision which of the following factors is not relevant? fixed production…
A: Make or buy decision: Every company wants to maximize its net income. The best method to increase…
Q: Define predatory pricing, dumping, and collusive pricing.
A: Target Costing:Target costing refers to the cost that is ascertained as per the needs and wants of…
Q: Which of the following is NOT true of regression techniques for estimating costs?
A: Cost: Cost can be defined as the cash and cash equivalent which is incurred against the products…
Q: Can a company use a target pricing model without a follow-on cost-savings sharing agreement? Why or…
A: Target price is the price at which the stock future price is estimated grounded on earnings…
Q: The internal rate of return (IRR), despite its shortcomings, can be a useful analysis tool for…
A: IRR is the required rate of return for the project to have zero Net Present value.
Q: Which of the following statements represents Margin of Safety (units)? O a. Expected sales (units)…
A: Solution: The margin of safety represent sales level that generates profits. Therefore margin of…
Q: What is the economic rationale for the cost approach? Under what conditions would the cost approach…
A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…
Q: Why do most of the engineers prefer Rate of Return Analysis to the PW method?
A: Answer: They would be calculating the present worth of cash flows using a net present value…
Q: Define the term Trade-Off between Risk and Reward?
A: Risk-Reward trade off refers to an investment principle which indicates higher the risk, higher is…
Q: Check all that apply: O Demand variability O Financial leverage O Competition and the abilit O Input…
A: Business risk are those related to the operations of business.
Q: What is customer value? Choose the correct. A. Ratio between the customer's perceived benefits…
A: A customer is an entity that buys goods or services from third parties. Accumulating a profitable…
Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…
A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…
Q: What are the important points to remember in preparing the breakeven point graph? The…
A: Break-even point is the point at which company neither earns profits nor incurs loss. Break-even…
Q: What is the primary disadvantage of basing the costplus pricing formula on absorption cost?
A: Definition: Cost plus-pricing approach: The pricing approach used by the companies to set the target…
Q: Anticipate TWO (2) drawbacks from the adverse selection on financial safety nets.
A: Financial Safety Nets- A financial safety net is not one savings account or an insurance guideline.…
Q: Explain the Trade-Off between Risk and Reward?
A: The trade-off means to lose one thing to achieve another thing. For example An organization is…
Q: Given the weaknesses of cost-based pricing, why wouldany company use this method?
A: Cost-based pricing means setting prices based on the cost of goods and services. The major…
Q: Why can cost benefit analysis be difficult to carry out?
A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…
Q: In what ways might using ROI as a performance indicator for investment centers lead to poor…
A: ROI: It measures the amount of return on a specific investment to the cost of the investment. The…
Q: How weak reserch culture have an affect on Low potential investment? Explain in detail.
A: The low potential investment is also known as the low-risk investment. It refers to the investment…
Q: When making decisions, managers should consider a. revenues that differ between alternatives. b.…
A: The explanation for the given options: a. A manager on the verge of making decisions must consider…
Q: Present the internal rate of return criterion and its strengths and weaknesses.
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Why is there often a conflict between the performance evaluation and cost-minimization objectives of…
A: SOLUTION- TRANSFER PRICING IS THE ACCOUNTING PRACTICE THAT REPRESENTS THE PRICE THAT ONE DIVISION…
Q: Draw an indifference curve for a risk-neutral investor providing utility level .05.
A: The indifference curve of a risk-neutral investor at the utility level of 0.05 is as follows:
Q: What should be done to apply rate-of-return analysis correctly?
A: Rate of return: It can be defined as the rate of interest that has been earned by the company on the…
Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?…
A: FIFO method is First in First out method in which inventory which is purchased first will be sold…
Q: return
A: The term profitability refers to metric which is used to measure profits. An analysis is made on how…
Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…
A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…
Q: Discuss (i). The notions and purposes of CVP Analysis, and (iii) The Components of CVP Analysis…
A: The behavior of profits in response to a change in cost and volume is explained by Cost Volume…
Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?
A: First-In-First-Out (FIFO) Method: It is a method of managing inventory of an organization. Under a…
Q: How can the expected sales for a product group be converted into ex
A: A product group is a collection of various products, classes of products, segments, etc which are…
Q: what are the advantages of calculating a supplier performance index?
A: Supplier Performance Index: A supplier performance index is used to determine the total cost of…
Q: What is meant by the terms margin and turnover in ROI calculations?
A: ROI( Return on investment) is a performance measure used to measure the efficiency of an…
Q: Least-squares regression is a statistical method for identifying cost behavior. True or False True…
A: According to the given question, we are required to give the answer that the statement is true or…
Q: Explain the behavioral problem that can result when cost-plus prices are based on variable cost.
A: Following is the answer to the given question
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- What tool can you use to incorporate probabilities into the What-If analysis? Sensitivity analysis Decision Tables Cost-volume-profit (CVP) graph Degree of operating leverage Margin of SafetyExplain the impact of risk, uncertainty, and changing variables on cost-volume-profit analysis.Controls that measure variables that influence future profitability are called Select one: a. output controls. b. activity controls. c. behavior controls. d. steering controls.
- Metrics that are early in the value chain are normally considered to be _____ indicators. a.value chain b.leading c.reciprocal d.laggingWhat are the important points to remember in preparing the breakeven point graph? The cost-volume-profit (CVP) graph?Describe relationship between risk and profitability.
- 3. Give an example of CVP and Compute BEP, Changes in Net Income, Margin of Safety, and Degree of Operating Leverage.which of the following quantifies how closely a manager's return pattern follows that of a benchmark index? Scenarios Value risk Tracking error multi factor modelDiscuss (i). The notions and purposes of CVP Analysis, and (iii) The Components of CVP Analysis (Break-Even Analysis, Target Analysis, Margin of Safety Analysis, Sales-mix Analysis and others)
- Which method results in a more realistic amount for income because it matches the most current costs against revenue? a.FIFO b.Weighted average cost c.Specific identification d.LIFOWhat ROI will equate the PV of Inflows and the PV of outflows? a. Internal rate of return (IRR) b. Cost of capital rate c. The desired rate of return d. The minimum rate of return.What is net operating margin ?