Which of the following assumptions made when using C-V-P analysis might affect the validity of the analysis?
Group of answer choices
Costs can be accurately separated into fixed and variable components.
Neither statement is correct
Both statements are correct
Fixed costs remain fixed and variable costs per unit do not change over the activity levels of interest.
Under CVP analysis it is assumed that costs can be divided into variable costs and fixed costs.
The total fixed cost remains constant and variable cost per unit remaining constant.
Both the statements are correct.
3rd option
Which of the following assumptions made when using C-V-P analysis might affect the validity of the...
All of the following are assumptions required to perform break-even and target profit calculations except: Group of answer choices Costs can be separated into fixed and variable components. Contribution margin ratio remains constant for each product, segment, or department. Break-even points can only be calculated for single product companies. Sales mix remains constant with changes in sales volume. None of the answer choices is correct.
1 Which statement describes best why you should document assumptions? a Assumptions might prove to be wrong. Knowing which assumptions were incorrect allows baseline adjustments in case of project crisis. b Assumption analysis is a valuable tool and technique to explore the validity of assumptions during risk identification. c Assumptions limit the project management team's options for decision making because they can not be controlled by the team. d In case of schedule or budget overruns, the documentation of assumptions...
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...
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...
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...
C-V-P Analysis Discussion Question Darin Musical Company manufactures and sells parts for musical gadgets. The business earned net income of $420,000 in 2018, when sales was 6,000 units and data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Fixed expenses: Required: Direct Material $20 Direct Labour $50 Variable Manufacturing Overhead $10 Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs $125,000 $75,000 $100,000 i) Compute the expected selling price per unit, using...
C-V-P ANALYSIS Discussion Question Darin Musical Company manufactures and sells parts for musical gadgets. The business earned net income of $420,000 in 2018, when sales was 6,000 units and data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: $20 $50 $10 Direct Material Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs Fixed expenses: $125,000 $75.000 $100,000 Required: i) Compute the expected selling price per unit, using...
Question 15 2 pts Which of the following approaches for estimating fixed and variable costs using historical information fits a straight line to a set of data points? Scattergraph method and regression analysis Scattergraph method and account analysis High-low method and account analysis Scattergraph method and high-low method None of the answer choices is correct. Question 16 2 pts All of the following are steps of the high-low method except: stating the results in equation form Y=f+ vX. calculating the...
accounting question
C-V-P ANALYSIS Discussion Question Darin Musical Company manufactures and sells parts for musical gadgets. The business earned net income of $420,000 in 2018, when sales was 6,000 units and data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: $20 $50 $10 Direct Material Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs Fixed expenses: $125.000 $75.000 $100,000 | Required: i) Compute the expected selling price...
Which of the following statements are true when making decisions using cost volume profit analysis? A. As long as the contribution margin is a positive number, net income will be positive B. As long as variable costs are more then fixed costs, net income will be negative C. As long as the contribution margin is greater than the fixed costs, net income will be positive D. As long as the sales price per unit is greater than fixed costs per...