________ is an underlying assumption of cost-volume-profit analysis. A : All costs can be classified as...
________ is an underlying assumption of cost-volume-profit analysis.
A : All costs can be classified as either variable or fixed with reasonable accuracy
B : Changes in activity and other factors affect costs
C : The behavior of both costs and revenues is curvilinear throughout the entire range of the activity index
D : All units produced are either sold or in ending inventory
Homework Answers
Answer: A) All Costs Can be Classified as either Variable or Fixed with Reasonable Accuracy.
CVP analysis made under so Many assumptions Those are
- The cost can be classified as fixed cost and Variable
- Selling Price, Variable cost Per unit, Total Fixed cost is Constant
- Other Factors are Constant
- all Units Must be sold
- Relation Between Cost and revenue must be linear.
Add Answer to:
________ is an underlying assumption of cost-volume-profit
analysis.
A : All costs can be classified as...
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.
One assumption of CVP (cost-volume-profit) analysis is that changes in activity are not the only factors...
One assumption of CVP (cost-volume-profit) analysis is that changes in activity are not the only factors that affect costs. Select one: True False
QUESTION 20 A basic assumption of the cost-volume-profit model is that: Cost drivers can be organized...
QUESTION 20 A basic assumption of the cost-volume-profit model is that: Cost drivers can be organized into unit-level, batch-level, product-level and facility level factors Higher volumes of product require lower prices The mix of products changes over time All costs can be accurately classified as either fixed or variable
Which of the following is not an assumption made when performing cost-volume-profit analysis? a) Worker efficiency...
Which of the following is not an assumption made when performing cost-volume-profit analysis? a) Worker efficiency is held constant. b) Number of units produced is greater than the number of units sold. c) The company produces within the relevant range of activity. d) There is a linear relationship between cost and volume for both fixed and variable cost.
Chapter 21 Cost- Volume Profit Analysis 2. How does assuming that operating activity occurs within a...
Chapter 21 Cost- Volume Profit Analysis 2. How does assuming that operating activity occurs within a relevant range affect cost-volume profit analysis? 3. How is a scatter diagram used to identify and measure the behavior of a company's costs? 4. In cost-volume profit analysis, what is the estimated profit at the break-even point?
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.
The cost volume profit analysis, commonly referred to as CVP, is a planning process that management...
The cost volume profit analysis, commonly referred to as CVP, is a planning process that management uses to predict the future volume of activity, costs incurred, sales made, and profits received. In other words, it’s a mathematical equation that computes how changes in costs and sales will affect income in future periods (Peavler, 2019). CVP analysis provides managers with the advantage of being able to answer specific questions needed in business analysis. Such as, what is the company's breakeven point?...
which of the following is not an assumption of cost-volume-profit (CVP) analysis? a) The number of...
which of the following is not an assumption of cost-volume-profit (CVP) analysis? a) The number of units sold is the only revenue driver and the only cost driver. b) Total costs can be separated into two components. c) When represented graphically, the behaviors of total revenues and total cost are linear. d) Selling price, variable cost per unit, and total fixed costs are known and constant. e) The total costs are never separate into components in this analysis.
Chapter 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool 4-4 In the cost-volume-profit grap a. the break-even...
Chapter 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool 4-4 In the cost-volume-profit grap a. the break-even point is found where the total revenue curve crosses the x-axis. b. the area of profit is to the lett 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. n important assumption of cost-volume-profit analysis is that...
Which of the following is an assumption that is NOT made in most cost-volume-profit calculations? Multiple...
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
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.
QUESTION 20 A basic assumption of the cost-volume-profit model is that: Cost drivers can be organized into unit-level, batch-level, product-level and facility level factors Higher volumes of product require lower prices The mix of products changes over time All costs can be accurately classified as either fixed or variable
Chapter 21 Cost- Volume Profit Analysis 2. How does assuming that operating activity occurs within a relevant range affect cost-volume profit analysis? 3. How is a scatter diagram used to identify and measure the behavior of a company's costs? 4. In cost-volume profit analysis, what is the estimated profit at the break-even point?
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.
Chapter 4 Cost-Volume-Profit Analysis: A Managerial Planning Tool 4-4 In the cost-volume-profit grap a. the break-even point is found where the total revenue curve crosses the x-axis. b. the area of profit is to the lett 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. n important assumption of cost-volume-profit analysis is that...
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
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