Homework Answers
Solution:
All costs can be accurately classified as either fixed or variable
Explanation:
Cost volume profit analysis is performed to determine the break even point and the required sales to earn the desired profit. The basic assumption of cost volume profit model is that all costs can be accurately classified as either fixed or variable.While applying the cost profit analysis it is assumed that all costs cab be classified into fixed and variable cost. In fact it is very difficult to identify each and every cost element as fixed and vairable. In the traditional type of recording costs, it is very difficult to segregate costs into fixed and variable.
Add Answer to:
QUESTION 20 A basic assumption of the cost-volume-profit model is that: Cost drivers can be organized...
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.
________ 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
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
Cost-volume-profit analysis (CPV) can be used by management to better understand the relationships between the company’s...
Cost-volume-profit analysis (CPV) can be used by management to better understand the relationships between the company’s costs, sales volume, and profit. Cost-volume-profit analysis can be used to evaluate the effects on profit when companies make changes in selling prices, service fees, costs, income-tax rates, and the organization’s mix of products or services. CVP analysis provides management with a comprehensive overview of the effects on revenue and costs, allowing them to implement financial changes and track outcomes. Managers in nonprofit organizations,...
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?...
A basic assumption of activity-based costing (ABC) is that: Multiple Choice O All manufacturing costs vary...
A basic assumption of activity-based costing (ABC) is that: Multiple Choice O All manufacturing costs vary directly with units of production O Products or services require the performance of activities and activities consume resources o Only costs that respond to unit-level drivers are product costs. O Only variable costs are included in the activity cost pools.
Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low-volume products to customer demand....
Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low-volume products to customer demand. Presented is information on 2009 manufacturing overhead and activity cost drivers. Level Total Cost Units of Cost Driver Unit $500,000 20,000 machine hours Batch 200,000 1,000 customer orders Product 200,000 50 products Product X1 required 2,000 machine hours to fill 10 customer orders for a total of 8,000 units. (a) Assuming all manufacturing overhead is estimated and predicted on the basis of machine hours,...
Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low volume products to customer...
Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low volume products to customer demand. Presented is information on 2013 manufacturing overhead and activity cost drivers Level Total Cost Units of Cost Driver $ 500.000 10.000 machine hours 100.000 500 customer orders Product 200.000 25 products Product X1 required 2,000 machine hours to fill 10 customer orders for a total of 8,000 units. (a) Assuming all manufacturing overhead is estimated and predicted on the basis of machine hours,...
Franklin Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS...
Franklin Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Franklin uses an activity-based costing system. The following are the relevant cost data for the previous month: + per Direct Cost per Unit Direct materials Direct labor Model ZM $20.60 29.20 Model DS $10.60 13.20 Category Unit level Batch level Product level Facility level Estimated Cost $ 24,000 47,500 87,500 270,000 $429,000 Cost Driver Number of units Number of setups...
Jordan Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS...
Jordan Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Jordan uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Direct materials Direct labor Model ZM $20.70 29.40 Model DS $7.00 9.00 Category Unit level Batch level Product level Facility level Total Estimated cost $ 25,960 49,920 90,000 180,000 $ 345,880 Cost Driver Number of units Number of setups...
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.
A basic assumption of activity-based costing (ABC) is that: Multiple Choice O All manufacturing costs vary directly with units of production O Products or services require the performance of activities and activities consume resources o Only costs that respond to unit-level drivers are product costs. O Only variable costs are included in the activity cost pools.
Multiple Cost Drivers Scottsdale Ltd. manufactures a variety of high-volume and low volume products to customer demand. Presented is information on 2013 manufacturing overhead and activity cost drivers Level Total Cost Units of Cost Driver $ 500.000 10.000 machine hours 100.000 500 customer orders Product 200.000 25 products Product X1 required 2,000 machine hours to fill 10 customer orders for a total of 8,000 units. (a) Assuming all manufacturing overhead is estimated and predicted on the basis of machine hours,...
Franklin Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Franklin uses an activity-based costing system. The following are the relevant cost data for the previous month: + per Direct Cost per Unit Direct materials Direct labor Model ZM $20.60 29.20 Model DS $10.60 13.20 Category Unit level Batch level Product level Facility level Estimated Cost $ 24,000 47,500 87,500 270,000 $429,000 Cost Driver Number of units Number of setups...
Jordan Cameras, Inc. manufactures two models of cameras. Model ZM has a zoom lens; Model DS has a fixed lens. Jordan uses an activity-based costing system. The following are the relevant cost data for the previous month: Direct Cost per Unit Direct materials Direct labor Model ZM $20.70 29.40 Model DS $7.00 9.00 Category Unit level Batch level Product level Facility level Total Estimated cost $ 25,960 49,920 90,000 180,000 $ 345,880 Cost Driver Number of units Number of setups...
Most questions answered within 3 hours.
-
is
it possible for a change in one nucleotide of an organism’s DNA to
result in...
asked 23 minutes ago -
Project 5 - intro to python
Write a program in python that calculates the amount of...
asked 18 minutes ago -
Compare/Contrast the following: protein/enzyme, ligand/substrate,
channel protein/carrier protein,
exocytosis/endocytosis.
asked 29 minutes ago -
A researcher asks: Are high school students who have tried
alcohol more likely to have had...
asked 31 minutes ago -
Use a style sheet to define the following rules and implement
the given HTML code. Please...
asked 32 minutes ago -
How many grams of KBr are contained in 200 mL of a 0.310 M KBr
solution?...
asked 35 minutes ago -
The three most valuable (in terms of current exploitation)
marine physical resources in order from most...
asked 46 minutes ago -
Please answer the below 3 problems and show your work.
a. P(-1.45 < Z < .98)...
asked 1 hour ago -
Discuss in 500 words your opinion on what lessons should be
learned from the 737 Max...
asked 55 minutes ago -
100.0 g of nitrogen and 200.0 g of carbon dioxide are added at
25 ◦C into...
asked 54 minutes ago -
In JAVA: For this question, you need to create two interface
programs in a package and...
asked 1 hour ago -
You notice that in early spring there is an equal distribution
of two different species of...
asked 1 hour ago