Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Selling price per unit does not change with volume b. Costs can be divided into variable and fixed components C. Fixed cost per unit is not constant d. Sales mix of products sold does not change O e. Costs are nonlinear
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Sales…
A: Cost volume profit analysis enables the management in determining the relation of costs and revenues…
Q: a. How can the mathematical equation for break-even sales show both sales units and sales dollars?…
A:
Q: Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B.…
A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…
Q: Which of the following is not a potential advantage of variable costing relative to absorption…
A: Variable costing is a method in which only variable cost is considered in product cost. Absorption…
Q: Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is…
A: Option E is the correct answer i.e Cost can be Divided into variable and fixed components.
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution Margin = Sales per unit - Variable cost per unit
Q: Which of the following does not represent a cost-volume-profit analysis equation? a. Contribution…
A: Your choice is incorrect because option b. Is represent a cost volume profit analysis equation. The…
Q: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…
A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…
Q: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…
A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost
Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…
A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…
Q: Which of the following is NOT true regarding an income statement organized according to the…
A: An income statement is a financial statement that tracks both corporate revenue and expenses over a…
Q: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…
A: Variable cost ratio = Variable cost per unit / Selling price per unit
Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…
A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…
Q: ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can…
A: The question is multiple choice question. The question is related to Marginal Costing and is of cost…
Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Sales - fixed…
A: Cost-volume-profit equation: Profit = Revenue – Fixed Costs – Variable Costs
Q: statement below. The point where total sales revenue equals total cost Drag answer here Fixed…
A: The contribution margin is computed as excess of sales revenue over variable expenses. The break…
Q: Which of the following is an opportunity cost? marginal cost cost of sales O lost sales cost of…
A: Introduction: Opportunity cost: Cost for the opportunity lost called Opportunity cost.
Q: Is this statement true or false? Can you please explain in detail. There is a difference between…
A: Firstly let us understand what is the theoretical production capacity is the optimum production…
Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…
A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…
Q: Which of the following statements is true? a. Both variable and fixed cost change with the change in…
A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…
Q: Describe how total variable costs and unit variable costs behave with changes in the level of…
A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…
Q: All these statements are true for Marginal costing except this O Costs are segregated based on…
A: Marginal costing refers to the costing approach in which, variable costs are considered as the…
Q: Cost−volume−profit analysis is NOT useful in ________. A. determining the appropriate sales mix…
A: Cost volume profit analysis assesses the impact of different cost and revenue levels on the…
Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…
A: To find: which of the following statement is true
Q: ?Which of the following does not represent a cost-volume-profit analysis equation Sales + fixed…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…
A: Fixed cost in total remains constant. They will not change by change in production.
Q: Which one of the following is not an assumption of CVP analysis? The behavior of costs and…
A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…
Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…
A: Hi student SInce there are multiple questions, we will answer only first question. Since first…
Q: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…
A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…
Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…
A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…
Q: Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on…
A: Cost volume profit analysis is designed for profit forecasting at varying levels of sale volume and…
Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…
A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…
Q: Which of the following statements is true? a. When production is greater than sales, operating…
A: The question is based on the concept of Cost Accounting.
Q: Which of the following statements about determining the breakeven point is FALSE? a)…
A: The breakeven point is the level of production at which the costs of production equals the revenue…
Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.
A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…
Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Which of the following is not a feature of full cost plus sales pricing related to a range of a…
A: Following is the answer to the given question
Q: 1. The difference between contribution margin and income from operations is ________. net income…
A: Fixed costs = Contribution margin - Income from operations Operating leverage = Contribution margin…
Q: What is happening to average costs when marginal cost is greater than average cost at a specific…
A: When marginal cost is greater than average cost (including average variable cost or average total…
Q: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…
A: The contribution margin is calculated as difference between sales and variable costs. The net income…
Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: Help4
A: Break-even point for a business is that position for a business where the difference between the…
Q: Which of the following is not an assumption underlying cost-volume-profit analysis?
A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…
Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…
A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…
Q: Which of the following statements correctly complete the sentence: "Gross Margin equals": I.…
A: Sales revenue less cost of goods manufactured is wrong because as per accrual concept, equivalent…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Option b is correct.
Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…
A: Break even point can be referred to as a sales level at which the firm is just able to recover all…
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- In the application of lower-of-cost-or-market, market is the (a) lowest sales price. (b) highest sales price. (c) replacement cost. (d) average sales price.Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs are linear b. Sales mix of products sold does not change c. Selling price per unit changes with volume d. Costs can be divided into variable and fixed components e. Fixed cost per unit is not constantWhich 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.
- ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can be divided into variable and fixed components a O Costs are linear b O Sales mix of products sold does not remain constant .cO Selling price per unit does not change with volumed O Fixed cost per unit is not constant e OWhich one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs can be divided into variable and fixed components O b. Costs are nonlinear Fixed cost per unit is not constant О с. O d. Sales mix of products sold does not change e. Selling price per unit does not change with volume O O 0 O OHow do costs behave when there is a change in volume?a) ______ increases or decreases in total in direct proportion to increases or decreases in sales volume. b) ______ remains the same in total, regardless of change in sales. c) ______ have both a variable and fixed component. d) Answer the following regarding the high-low method:i) What is the formula for determining the variable costs when using the high low method:ii) Given the following information for the high and low levels, what is the variable cost per unit and the total fixed costs? iii) Based on the information in part ii), what is the relevant range?In MyAccountingLab, complete Try It! 21-1 and S21-1 through S21-3.LO2. What is contribution margin, and how is it used to compute operating income?a) What is the contribution margin if net sales revenue is $100,000 and variable costs are $40,000? b) Based on the information in part a), what is the contribution margin ratio?In MyAccountingLab, complete Try It! 21-2 and S21-4 and…
- Which 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.In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve crosses the x-axis.b. the area of profit is to the left of the break-even point.c. the area of loss cannot be determined.d. both the total revenue curve and the total cost curve appear.e. neither the total revenue curve nor the total cost curve appear.Which one of the following is not an assumption of CVP analysis? The behavior of costs and revenues are linear within the relevant range. Sales mix remains constant. All units produced are sold. All costs are variable costs.
- Which of the following statements about profit measurement under absorption and marginal costing is not true (assuming that unit variable costs and fixed costs are constant)? O A. If inventory levels increase then profits measured using absorption costing will be higher than profits measured using marginal costing. O B. If inventory levels decrease then profits measured using marginal costing will be higher than profits measured using absorption costing. OC. Profits measured using absorption costing will be either lower or higher than profits measured using marginal costing. O D. Profits measured using absorption costing may be the same as, or lower than, or higher than profits measured using marginal costing.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.Below is the information on a project that you are evaluating for deciding on its worthiness as an investment. ABC company is considering a new investment whose data are shown below. WACC for the project under consideration Net investment in fixed assets (immediate) Required new working capital (immediate) Working capital from the end of the first year onwards as a Percentage of Sales Straight line deprec. Rate (every year end from the end of year 1} Sales revenues (starting at the end of year 1) Operating cost excluding depreciation, (starting at the end of year 1) 10% 75000 15000 25% 33.33% 75000 25000 Tax Rate Annual increase in Operating Costs each year from year 2 onwards Annual increase in Sales revenue from the end of the year 2 onwards Depreciation: Fixed assets to be fully depreciated in books using the straight line method over 4 years to zero Salvage value of the fixed assets at the end of the project life 35% 6% 9750