Homework Answers
| Option C | |
| One of the assumptions of the cost volume profit (CVP) analysis is that the selling price remains the same for any level of output | |
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Which of the following is not one of the assumptions underlying cost-volume-profit analysis? Select one: O...
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 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.
________ 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
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized...
Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized the interrelationships of costs, quantity sold, and price. This analysis is defined as assessment of total revenues, total costs and operating income in response to changes in the volume of sales, the selling price, variable cost or fixed costs of production. The CVP analysis can be a valuable tool in identifying the extent and magnitude of the economic trouble a company is facing and...
Sensitivity analysis evaluates the NPV with respect to: Select one: a. Changes in the underlying assumptions....
Sensitivity analysis evaluates the NPV with respect to: Select one: a. Changes in the underlying assumptions. b. One variable changing while holding the others constant. c. Different economic conditions. d. All of the above. e. None of the above.
For what is cost-volume-profit (CVP) analysis used? What are some of the key underlying assumptions that...
For what is cost-volume-profit (CVP) analysis used? What are some of the key underlying assumptions that make CVP analysis useful for decision makers? Why might decision makers use CVP analysis?
AC 204 - Introduction to Accounting II Chapter 5: Cost-Volume-Profit (CVP) Analysis CEG Ski Corporation Total...
AC 204 - Introduction to Accounting II Chapter 5: Cost-Volume-Profit (CVP) Analysis CEG Ski Corporation Total Per unit Sales 330,000 $ 550 $ Units sold = 600 Variable expenses 165,000 275 Contribution margin 165,000 $ 275 $ Fixed expenses 75,000 Net operating income 90,000 $ FOR EACH SITUATION, YOU NEED TO EVALUATE HOW THE CHANGES AFFECT CONTRIBUTION MARGIN AND HOW THE CHANGES AFFECT FIXED EXPENSES. Also, increase in fixed costs = decrease to income; decrease in fixed costs = increase...
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...
please help with 8,9,10 suncuy variable. Consistent with these assumptions, as volume CVP analysis relies on...
please help with 8,9,10
suncuy variable. Consistent with these assumptions, as volume CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent decreases a total fixed costs decrease. b. total variable costs remain constant c. total costs decrease. d. total costs remain constant. The total contribution margin decreases if sales volume remains the same and a. fixed expenses increase. b. fixed expenses decrease c. variable expense per unit increases. d. variable expense per unit...
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...
please help with 8,9,10
suncuy variable. Consistent with these assumptions, as volume CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent decreases a total fixed costs decrease. b. total variable costs remain constant c. total costs decrease. d. total costs remain constant. The total contribution margin decreases if sales volume remains the same and a. fixed expenses increase. b. fixed expenses decrease c. variable expense per unit increases. d. variable expense per unit...
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