One of the most difficult steps in working with cost-volume-profit is determining which costs are variable...
Homework Answers
DIFFICULTIES IN CLASSIFYING COSTS AS VARIABLE AND FIXED IN WORKING WITH COST-VOLUME-PROFIT ANALYSIS :
Under CVP analysis, it is assumed that costs should be classified as variable and fixed and encountered following difficulties
- Identification and segregation of fixed costs and variable costs among total costs are very difficult in CVP analysis.
- There may be changes in the cost allocation policies and procedures of the business activity which made the classifying more difficult.
- Variability in activity levels have its mere impact on fixed cost and it gets difficult to identify the portion of fixed costs.
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One
of the most difficult steps in working with cost-volume-profit is
determining which costs are variable...
Which one of the following is not an assumption of cost-volume-profit analysis? The behavior of costs...
Which one of the following is not an assumption of cost-volume-profit analysis? The behavior of costs is linear throughout the relevant range. All costs can be classified as either variable or fixed. Changes in activity and sales mix are the only factors that affect costs. O All units produced are sold.
Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O...
Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O A. Production equals sales. O B. All costs can be segregated into fixed and variable components. O C. The selling price increases or decreases with changes in sales volume. O D. Costs are linear.
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Which of the following is an assumption that is NOT made in most cost-volume-profit calculations? Multiple...
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which of the following is most likely to be variable cost QUESTION 4 Which of the...
which of the following is most likely to be variable
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QUESTION 4 Which of the following is most likely to be a variable cost? O A. Rent for CEO's office OB. Depreciation on production equipment O C. Cost of merchandise O D. Factory supervisor's salary 2.5 p QUESTION 8 Gamma Company has a selling price of $3/unit, unit variable costs of $2/unit and total fixed costs of $1,000. Current sales revenue is $12,000. What is the margin of safety...
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Which one of the following is not an assumption of cost-volume-profit analysis? The behavior of costs is linear throughout the relevant range. All costs can be classified as either variable or fixed. Changes in activity and sales mix are the only factors that affect costs. O All units produced are sold.
Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O A. Production equals sales. O B. All costs can be segregated into fixed and variable components. O C. The selling price increases or decreases with changes in sales volume. O D. Costs are linear.
Which of the following is an assumption that is NOT made in most cost-volume-profit calculations? Multiple Choice The selling price is constant. Selling price, variable expense per unit, and fixed expense per unit do not change throughout the relevant range. In a multiproduct company, the sales mix does not chang There is no change in inventory levels
A A A Aa A A2A Styles Dictate ! Styles Pane Term Cost-volume- profit analysis Definition The proportion of products based upon the number of units sold. The proportion of products sold based on total sales revenue. Analysis that focuses on relationships among revenue, volume, mix of units sold, variable and fixed costs. Analysis that focuses on determining the number of units or " sales revenue required to generate a desired net income Analysis that focuses on determining the number...
which of the following is most likely to be variable
cost
QUESTION 4 Which of the following is most likely to be a variable cost? O A. Rent for CEO's office OB. Depreciation on production equipment O C. Cost of merchandise O D. Factory supervisor's salary 2.5 p QUESTION 8 Gamma Company has a selling price of $3/unit, unit variable costs of $2/unit and total fixed costs of $1,000. Current sales revenue is $12,000. What is the margin of safety...
Cost-Volume-Profit Analysis P6-A Melon Company produces a knockoff watch that sells for $40 each. Variable costs are $12 each and fixed costs are $210,000 each year. Required: 1) What is this product's contribution margin ratio (CM %)? 2) What is this company's break-even point in sales dollars? 3) If sales increase $400,000, how much will net income increase (assuming they are operating within the relevant range and fixed costs do not change) ? 4) Assume 20,000 units were sold last...
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