Which one of the following is an assumption of CVP analysis? a) sales in units remain...
Which one of the following is an assumption of CVP analysis?
a) sales in units remain constant
b) all costs are variable
c) the change in beginning and ending inventories is reflected in the analysis
d) the behaviour of costs and revenues are linear within the relevant range
Homework Answers
Answer- The following is an assumption of CVP analysis = the behavior of costs and revenues are linear within the relevant range.
Explanation- Cost-volume profit analysis is based on the assumption of the behavior of costs (ie- Both variable & fixed costs) and revenues are linear within the relevant range of activity.
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Which one of the following is an assumption of CVP analysis?
a) sales in units remain...
Which one of the following is not an assumption of CVP analysis?
Which one of the following is not an assumption of CVP analysis? Profit for the period is constant. The sales mix is constant. Costs can be classified as variable or fixed. Volume or level of activity affects costs.
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.
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 an assumption underlying standard CVP analysis? Multiple Choice The price of...
Which of the following is an assumption underlying standard CVP analysis? Multiple Choice The price of a product or service is expected to change as volume changes. 0 Fixed expenses will change as volume increases. In multiproduct companies, the sales mix is constant. С C In manufacturing companies, inventories always change. If sales volume increases and all other factors remain constant, then the: Multiple Choice net operating income will decrease. O margin of safety will increase. contribution margin ratio will...
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.
CVP analysis Gary's Florist CVP Income Statement For the Year Ending December 31, 2017...
CVP analysis
Gary's Florist
CVP Income Statement
For the Year Ending December 31, 2017
Total
Per Unit
Sales
Revenue
Variable
Costs
Contribution Margin
Fixed
Costs
Net
Income
Units
Sold:
Sales Revenue Per Unitt som Variable costs per unit $31 . Fixed Costs $151,875 * Create formulas in the appropriate locations for all remaining elements except Units Soid, which should remain blank. Use Goal Seek to determine the breakeven unit sales. Create a second CVP Analysis tab (named appropriately) and use...
Which one of the following statements about cost behaviour is true? Select one: Fixed costs per...
Which one of the following statements about cost behaviour is true? Select one: Fixed costs per unit vary with the level of activity. Variable costs per unit are not constant within the relevant range. Total fixed costs are not constant within the relevant range. Total variable costs are constant within the relevant range. Pizza Paradise makes and sells only one kind of Pizza; Hawaiian Pizza, which is made with a key ingredient, Pineapple slices. Classify the Pineapple slices used in...
________ 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
Is this correct? What is the main limitation of CVP analysis? Select one: O a. The...
Is this correct?
What is the main limitation of CVP analysis? Select one: O a. The analysis assumes a linear revenue function and a linear cost function O b. The analysis assumes that what is produced is sold c. The analysis assumes that fixed and variable costs can be accurately identified d. The analysis assumes that selling prices and costs are known with certainty
Explanation not necessary Which of the following represents the components of the income statement for a...
Explanation not necessary Which of the following represents the components of the income statement for a service business? A Service Revenue - Operating Expenses = operating income B. Sales Revenue - Cost of Goods Manufactured = gross profit C. Sales Revenue - Cost of Goods Sold = gross profit D. Service Revenue - Cost of Goods Purchased = gross profit Fixed costs are expenses that A vary in response to changes in activity level B. remain constant as activity changes...
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 an assumption underlying standard CVP analysis? Multiple Choice The price of a product or service is expected to change as volume changes. 0 Fixed expenses will change as volume increases. In multiproduct companies, the sales mix is constant. С C In manufacturing companies, inventories always change. If sales volume increases and all other factors remain constant, then the: Multiple Choice net operating income will decrease. O margin of safety will increase. contribution margin ratio will...
CVP analysis
Gary's Florist
CVP Income Statement
For the Year Ending December 31, 2017
Total
Per Unit
Sales
Revenue
Variable
Costs
Contribution Margin
Fixed
Costs
Net
Income
Units
Sold:
Sales Revenue Per Unitt som Variable costs per unit $31 . Fixed Costs $151,875 * Create formulas in the appropriate locations for all remaining elements except Units Soid, which should remain blank. Use Goal Seek to determine the breakeven unit sales. Create a second CVP Analysis tab (named appropriately) and use...
Which one of the following statements about cost behaviour is true? Select one: Fixed costs per unit vary with the level of activity. Variable costs per unit are not constant within the relevant range. Total fixed costs are not constant within the relevant range. Total variable costs are constant within the relevant range. Pizza Paradise makes and sells only one kind of Pizza; Hawaiian Pizza, which is made with a key ingredient, Pineapple slices. Classify the Pineapple slices used in...
Is this correct?
What is the main limitation of CVP analysis? Select one: O a. The analysis assumes a linear revenue function and a linear cost function O b. The analysis assumes that what is produced is sold c. The analysis assumes that fixed and variable costs can be accurately identified d. The analysis assumes that selling prices and costs are known with certainty
Explanation not necessary Which of the following represents the components of the income statement for a service business? A Service Revenue - Operating Expenses = operating income B. Sales Revenue - Cost of Goods Manufactured = gross profit C. Sales Revenue - Cost of Goods Sold = gross profit D. Service Revenue - Cost of Goods Purchased = gross profit Fixed costs are expenses that A vary in response to changes in activity level B. remain constant as activity changes...
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