Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on the break-even point of an increase or decrease in fixed costs b.how many units must be sold to break even c.the identification of price and efficiency variances d.the ability to conduct sensitivity analysis of cost or price changes
Q: Which of the following is a limitation of the gross profit variance analysis? a. The level of…
A: Gross profit variance analysis refers to the analysis which dealt with how to analyse the profit…
Q: Which of the following is false regarding activity-based costing (ABC)? a. Companies that have…
A: Activity based costing is a type and method of costing methodology, in which all indirect costs or…
Q: Which of the following is NOT true of variable costing? a. Profits may increase though sales…
A: Variable costing is a concept used in managerial and cost accounting in which the fixed…
Q: Required: 1. What is the contribution margin market share variance? 2. What is the contribution…
A: Sales Price variance = (Actual Price-Budgeted Price)*Actual Quantity Sales Volume Variance = (Actual…
Q: Which of the following is not a true statement about variable costs? O a. Total cost is known to…
A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…
Q: Which of the following statements is false? * The quantity factor refers to the change in the number…
A: The difference between the actual cost or price and the budgeted (standard) cost or price is…
Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…
A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due…
Q: In regard to the Sales-Volume Variance, which of the following statements is false. A) The…
A: Flexible budget variance is the difference between an actual result and a flexible-budget amount.…
Q: How can the concept of a composite unit be used to explain why an unfavorable total sales-mix…
A: Sales mix variance: The difference between a budgeted and actual sales mix. Sales mix is a…
Q: Which of the following statements about margin of safety is false? a. Margin of safety measures the…
A: margin of safety is that much sales is above the break even point sales.
Q: Which of the following statements about margin of safety is false? O a. If only the fixed costs…
A: The Margin of Safety is the difference between the Budgeted Revenues and Breakeven Revenues.…
Q: What would be the most likely cause of an unfavorable pay rate variance together with a favorable…
A: when we talk in context of the counting the variance implements the difference between the busted…
Q: computed in requirements 1 and 2. Was the new service a success from an overall cost-control…
A: It is important to understand the reason of variance and the nature of various that will affect…
Q: Which of the following statements about margin of safety is false? O a. If the variable cost per…
A: Margin of safety is calculated as excess of current sales revenue over break even sales.
Q: Is this statement true or false? Can you please explain in detail. There is a difference between…
A: Firstly let us understand what is the theoretical production capacity is the optimum production…
Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…
A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…
Q: Which of the following conditions might cause a material variance?
A: Direct material cost variance: direct material variance is variance analysis done by the company to…
Q: Required: 1. What is the contribution margin market share variance? 2. What is the contribution…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Which of the following statements is false? * The sum of the sales volume variance and cost volume…
A: Sales volume variance Analysis Sales volume variance analysis which can be determine to know the…
Q: Which of the following statements is true? a. Both variable and fixed cost change with the change in…
A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…
Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…
A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…
Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…
A: Opprtunity cost should be consider while accepting special order. As order is received at full…
Q: Which of the following statements related to CVP chart is not true? O a. To calculate the total…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: ?Which of the following statements about margin of safety is false .Margin of safety measures the…
A: The MOS is the difference between the budgeted sales or actual sales and the break-even sales. It…
Q: When constrained by a limiting resource, managers often seek to produce those products which have:…
A: if a manager constrained by limiting resource, he can be to produce those products which have the…
Q: Do you agree with the following statements? Check only those with which you agree. Check All That…
A: Variable Costing refers to those costs which are directly related to the production and changes with…
Q: volume variance
A: Sales volume variance measures the difference between the actual units sold and the budgeted units…
Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…
A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…
Q: A regression equation is set up, where the dependent variable is total costs and the independent…
A: A correlation coefficient of 0.70 implies that the level of production explains 49% of the variation…
Q: Which of the following statements is not true regarding the use of variable and absorption costing…
A: Answer: Option d.
Q: Which of the following analysis of variances is true? * A unfavorable sales price variance under the…
A: Cost price variance is the difference between the actual unit cost and the budgeted unit cost,…
Q: Which of the following statements about CVP analysis is false? O a. The CVP analysis assumes that…
A: Cost Volume Profit (CVP) analysis is only accurate if costs are kept constant within a given…
Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…
A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…
Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?…
A: FIFO method is First in First out method in which inventory which is purchased first will be sold…
Q: Which of the following statements is false? a. The sum of the sales volume variance and cost volume…
A: Statement (a) is false among all four because- The sum of sales quantity variance and sales mix…
Q: which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring…
A: The difference between the Standard labour Cost for actual hours worked and actual wages paid is…
Q: Although there are many reasons to this concern, one of the general reasons in gross profit variance…
A: A variance is generated when there is a difference between a budgeted value and the actual value…
Q: Which of the following would result to a favorable volume variance? a)There is a favorable…
A: Favorable spending variance means when there is a cost to produce something which is less than the…
Q: Which of the following analysis of variances is true? a. Unfavorable sales volume variance means…
A: Cost price variance is the difference between the actual unit cost and the budgeted unit cost,…
Q: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether…
A: Hypothesis testing refers to the form of inferable statistics which allows us in making conclusions…
Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…
A: Sales price variance is the difference between the actual and standard/Budgeted selling price of…
Q: Bulldogs Inc. wants to determine the impact of the change in selling price of its sole product in…
A: The difference between the actual cost or price and the budgeted (standard) cost or price is…
Q: What is a materials price variance? Describe this in your own words. Writing a formula is not a…
A: The material price variance is the difference between the actual cost of material and the standard…
Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…
A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…
Q: In order to draw a basic break-even chart, which of the following information would you not require?…
A: The break even sales are the sales where business earns no profit no loss during the period. The…
Q: Is it possible for a retail store such as Apple to use variances in analyzing its operating…
A: Variance analysis is usually done to find the difference between actual performance and budgeted…
Q: Answer two questions please 1-What is meant by the term variance? What advantages standard costing…
A: Marginal costing includes only direct cost while absorption costing includes both direct and…
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- Explain how the high-low method is used for cost estimation. What, if any, are the limitations of this approach to cost estimation?From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod? Is it possible to monitor cost trends using the weighted-average method?Which of the following items would be useful to management in deciding whether to investigate the cause of a reported standard cost variance? O Cost-volume-profit analysis. O Simultaneous equations. O Linear regression analysis. O Iso-profit lines. Indifference probability.
- 7. Which of the following charts best represent total variable costs? For each chart, the line represents the cost behavior pattern, the vertical axis represents costs, and the horizontal axis represents total volume, (A) Your answer is (B) (C) (D) Explain your answer: 8. Which of the following is NOT a cost estimation method? A) High-low cost estimation B) Scatter diagrams C) Least-square regressions D) CVP analysis Your answer is Explain your answer: 9. Assume a local Cost Cutters provides cuts, perms, and hairstyling services. Annual fixed costs are $120,000, and variable costs are 40 percent of sales revenue. Determine its break-even point in sales dollars. A) $250,000 B) $200,000 c) $240,000 D) $360,000 Your answer is Explain your answer:Give me a formula of sensitivity analysis under of cost volume profit analysis(CVP). Thank youuu:)Cost-Capacity calculation technique takes into account a constant exponent to relate different costs to their respective capacities. a. False b. True The potential percent gain or loss in changes of variable is taken into account by: a. break-even analysis b. sensitivity analysis c. present worth analysis d. cost-benefit analysis
- R-squared is a measure of a. The spurious relationship between cost and activity b. The fxed cost component C The variable cost per unit activity d. How well the regression line accounts for the changes in the dependent variableWhich of the following can be considered a risk in CVP analysis? a. Sales mix b. Break-even point c. Margin of safety d. Contribution marginProfitability changes may be simply calculated by using what kind of tool: sales price/volume/variable costs/fixed costs.
- Explain the behavioral problem that can result when cost-plus prices are based on variable cost.In the cost equation TC = F + VX, “V” is best described as the: Multiple Choice intercept of the cost equation. total costs that do not vary with changes in the activity level. activity level used to estimate the dependent variable. slope of the cost equation.Which of the following statements related to cost estimation methods is true? O a. The low-high method is used to derive an estimated line of cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O b. The high-low method is the most accurate and reliable method to determine the cost behavior compared to scatter-graph plot and least-squares regression methods. O c. None of the given answers. O d. Only high-low method has a slope and an intercept. e. The most complex method of cost estimation is the high-low method.