Homework Answers
#The answer will be Differential cost.
- Differential cost refers to cost of two alternative decisions. Here we have two alternative costs(i.e for flight and driving ) each have incurred costs. So we can measure such costs and can come to conclusion.
- Sunk cost - this cost which already incurred. In our case the cost are yet to be made . So we can't make decisions through Sunk cost
- Contribution margin - conclude out of( Sales Less variable cost). It can be a alternative for decision-making but in our case we have to conclude some fixed costs too.
- Gross margin - Sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides. This was also not preferable for decision-making.
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3 pts Question 4 Assume a company was deciding whether to send employees to a conference...
Question 1 1 pts The range over which a company is expected to operate is called...
Question 1 1 pts The range over which a company is expected to operate is called the relevant range of the activity index. True False Question 2 1 pts A mixed cost contains both selling and administrative cost elements. True False Question 3 1 pts Variable costs are costs that remain the same per unit at every level of activity. True False Question 4 1 pts If a salesperson incurs $2,000 of expenses in servicing two customers and $4,000 of...
Requirement 4. Xavier's top management is deciding whether to embark on a $ 200 comma 000...
Requirement 4. Xavier's top management is deciding whether to
embark on a $ 200 comma 000 advertising campaign. The marketing
firm has projected annual sales volume to increase by 18% as a
result of this campaign. Assuming that the projections are
correct, what effect would this advertising campaign have on the
company's annual operating income? If Xavier embarks on this
advertising campaign, sales revenue and variable costs will rise by
18 %, which will cause the contribution margin to increase...
Continuing with the company selected in Unit 2, think about the types of financial data that...
Continuing with the company selected in Unit 2, think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a: Customer Product line In addition, explain sunk and opportunity costs as they relate to your selected company. Should these costs be considered in differential analysis? Why or why not? 1. The Cement Manufacturing Company sells cements to specialist industries....
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the...
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Cannot be determined $200 $300 $48 Question 16 A division sold 200,000 calculators during 2017: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the unit contribution margin? $6.50 $8.50 $3.50 $1.00 Question 17 4 pts At the...
Question 1 2 pts The CFO of Brain Capital Co is cautious when deciding whether to...
Question 1 2 pts The CFO of Brain Capital Co is cautious when deciding whether to undertake a new potential project and therefore, she projects an optimistic, a realistic, and the most pessimistic outcomes that can happen. Which type of analysis is she using? O Sensitivity Analysis Scenario Analysis Rationing Analysis Simulation Testing Break-Even Analysis Question 2 3 pts At the accounting break-even point, Mountains and Lakes Co. sells 22,940 boots at a price of $19 each. The depreciation is...
Question 3 3 pts The advantage of the Contribution Format Income Statement is that it helps...
Question 3 3 pts The advantage of the Contribution Format Income Statement is that it helps managers Clearly distinguish between fixed and variable costs Separates selling from administrative expenses Creates an amount called gross margin Is required by GAAP for external reporting purposes
Multiple Choice Question 98 The following information is available for Sunland Company: Sales Cost of goods...
Multiple Choice Question 98 The following information is available for Sunland Company: Sales Cost of goods sold $620000 420000 Total fixed expenses Total variable expenses $150000 370000 A CVP income statement would report contribution margin of $250000. gross profit of $200000. gross profit of $250000. contribution margin of $470000.
Multiple Choice Question 98 The following information is available for Oriole Company: Sales $550000 Cost of...
Multiple Choice Question 98 The following information is available for Oriole Company: Sales $550000 Cost of goods sold 350000 Total fixed expenses Total variable expenses $150000 310000 A CVP income statement would report contribution margin of $400000. O gross profit of $240000. O contribution margin of $240000. O gross profit of $200000.
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on...
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on the balance sheet as a current asset O an inventory account on the balance sheet as equity an inventory account on the income statement as revenue Question 4 4 pts Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? O cost of goods sold O merchandise inventory gross profit o...
Question 1 The managerial accounting reports of a company would be of most interest and benefits to the company's:
Question 1 The managerial accounting reports of a company would be of most interest and benefits to the company's: A banker B. largest stockholder C. bondholders D. vice president of manufacturing Question 2Which of the following would NOT be classified as a product cost?A. Direct materialsB. Direct laborC. Indirect materialsD. Insurance on the manufacturing plantE. Sales commissionsQuestion 3 Which of the following is NOT a broad cost classification category typically used in activity-based costing? A Unit-level B. Batch-level C. Product-sustaining level D. Facility-level...
Question 1 1 pts The range over which a company is expected to operate is called the relevant range of the activity index. True False Question 2 1 pts A mixed cost contains both selling and administrative cost elements. True False Question 3 1 pts Variable costs are costs that remain the same per unit at every level of activity. True False Question 4 1 pts If a salesperson incurs $2,000 of expenses in servicing two customers and $4,000 of...
Requirement 4. Xavier's top management is deciding whether to
embark on a $ 200 comma 000 advertising campaign. The marketing
firm has projected annual sales volume to increase by 18% as a
result of this campaign. Assuming that the projections are
correct, what effect would this advertising campaign have on the
company's annual operating income? If Xavier embarks on this
advertising campaign, sales revenue and variable costs will rise by
18 %, which will cause the contribution margin to increase...
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Cannot be determined $200 $300 $48 Question 16 A division sold 200,000 calculators during 2017: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the unit contribution margin? $6.50 $8.50 $3.50 $1.00 Question 17 4 pts At the...
Question 1 2 pts The CFO of Brain Capital Co is cautious when deciding whether to undertake a new potential project and therefore, she projects an optimistic, a realistic, and the most pessimistic outcomes that can happen. Which type of analysis is she using? O Sensitivity Analysis Scenario Analysis Rationing Analysis Simulation Testing Break-Even Analysis Question 2 3 pts At the accounting break-even point, Mountains and Lakes Co. sells 22,940 boots at a price of $19 each. The depreciation is...
Question 3 3 pts The advantage of the Contribution Format Income Statement is that it helps managers Clearly distinguish between fixed and variable costs Separates selling from administrative expenses Creates an amount called gross margin Is required by GAAP for external reporting purposes
Multiple Choice Question 98 The following information is available for Sunland Company: Sales Cost of goods sold $620000 420000 Total fixed expenses Total variable expenses $150000 370000 A CVP income statement would report contribution margin of $250000. gross profit of $200000. gross profit of $250000. contribution margin of $470000.
Multiple Choice Question 98 The following information is available for Oriole Company: Sales $550000 Cost of goods sold 350000 Total fixed expenses Total variable expenses $150000 310000 A CVP income statement would report contribution margin of $400000. O gross profit of $240000. O contribution margin of $240000. O gross profit of $200000.
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on the balance sheet as a current asset O an inventory account on the balance sheet as equity an inventory account on the income statement as revenue Question 4 4 pts Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? O cost of goods sold O merchandise inventory gross profit o...
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