Which of the following statements correctly complete the sentence: "Gross Margin equals": I.   sales revenue less (minus) cost of goods sold. II.  contribution margin less (minus) fixed costs. III. operating income plus all period costs. IV.  sales revenue less (minus) cost of goods manufactured.

Q: The amount of revenue required to earn a target profit is equal to Total fixed cost divided by…

A: The break even sales are the sales where business earns no profit no loss.

Q: Net profit under absorption costing may differ from net profit determined under d costing. How is…

A: The variable costing includes variable manufacturing costs in its production cost and absorption…

Q: Compute for the: a. Total manufacturing cost for the period b. Cost of goods sold for the period c.…

A: Step 1 A costing statement or cost sheet is a breakup of all costs incurred, which is consists of…

Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…

A: The gross profit method is the one wherein the amount of inventory is measured using the gross…

Q: Total _____ costs remain unchanged when activity changes.     Fixed cost     Variable cost…

A: Cost: It refers to the aggregated amount that is spent on manufacturing a product.

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Net Sales Revenue: Variable Cost of Goods Sold: Fixed Cost of Goods Sold: Variable Selling and…

A: Absorption costing considers all costs of manufacturing as product costs irrespective of the nature…

Q: In Cost-Volume-Profit analysis, it is an important assumption that all units produced are sold; in…

A: Cost-Volume-Profit analysis is performed to analyze the behavior of costs and revenues and it shows…

Q: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…

A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost

Q: Which of the following statements is true? Multiple Choice Product costs and variable costs are…

A: Product cost means the cost which are incurred to create a product that is intended for sale to the…

Q: Which of the following is NOT true regarding an income statement organized according to the…

A: An income statement is a financial statement that tracks both corporate revenue and expenses over a…

Q: Throughput margin is equal to revenues minus direct materials and direct labor of the cost of goods…

A: Throughput margin = sales revenue - material cost .

Q: In a multi-product company, Proportion of product sales to total sales at BEP will be equal to…

A: SOLUTION- MULTI PRODUCT COMPANY- IT WORKS BEST WHEN A CUSTOMER FOR ONE PRODUCT IS LIKELY TO BE…

Q: Which of the following formulas is used to calculate the contribution margin ratio? (Sales − Fixed…

A:

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: d. Explain why there is or is not a difference in the net income amounts in the two income…

A: Absorption costing and variable costing are two costing methods under which the major difference…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: contribution margin is sales made less variable cost incurred is contribution margin

Q: First: The inventory value shown on the balance sheet is generally higher under absorption costing…

A: Under variable costing, product cost consists of only variable manufacturing costs.  Under…

Q: Which of the following is an opportunity cost? marginal cost cost of sales O lost sales cost of…

A: Introduction: Opportunity cost: Cost for the opportunity lost called Opportunity cost.

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Cost volume profit analysis is also known as CVP analysis. It shows how profits of the organisation…

Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…

A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…

Q: How do you compute the unadjusted cost of goods sold?

A: Cost of Goods Sold: Once the product is manufactured, that product is delivered to customers. The…

Q: Which one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of…

A: Contribution Margin = Sales Price - Variable Costs Variable Cost of Goods Sold as a Percent of Sales…

Q: On a traditional income statement, sales revenue less cost of goods sold equals   Question 26…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: This is part of break-even analysis.

Q: The difference between sales and marginal cost is______________ a. Fixed Cost b. Profit c. Sales…

A: Introduction: Sales price: The price for which the goods are sold called as sales price. Total sales…

Q: s it always higher in cost of goods sold in Weighted average compared to FIFO?

A: Inventory and cost of goods sold can be value on the basis of FIFO or LIFO basis. In LIFO , cost of…

Q: estion will save this respo I using: cost of good available for cost of goods sold, sales

A: The right answer is option d Gross sales, Sales return &allowances, sales discount

Q: 1. The amount by which an item contributes towards covering fixed cost and providing for profit is…

A:

Q: Determine the following amounts. Round your answers to the nearest dollar. a. Cost of goods sold b.…

A: Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Q: Give the solution: How much is the total cost of goods sold?

A: For an investor or other stakeholders, income statement or statement of profit or loss is an…

Q: A cost - based transfer price considers the cost of producing the goods when determining the price.…

A: At the time of determining the prices of the goods, the cost of goods-producing is required to be…

Q: 1.Based on the data above. What is the total conversion cost? 2.Based on the data above. What is…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per…

A: Contribution margin is the sales revenue over and above its variable costs. Contribution margin =…

Q: This best accounts for the difference in profit between the absorption and variable costing *…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: i.) Determine the cost of goods sold using each of the following flow assumptions:

A:

Q: The difference between total sales in dollars and total variable expenses is called: a. net profit…

A: Contribution Margin Contribution Margin is the amount of revenue remaining  after variable costs to…

Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

Q: The variable cost ratio represents  The proportion of variable costs in relation to net income The…

A: Solution : The variable cost ratio represents  Correct answer is Option 3 . The proportion of…

Q: The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable…

A: Contribution margin ratio is the difference total sales and total variable cost which is calculated…

Q: What does the term sales mix mean? How is a weighted-average unit contribution margin computed?

A: Contribution Margin is defined as the difference between the sales and the variable cost. In other…

Q: Which of the following expressions can be used to calculate brcak-even sales revenue with the…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…

A: Option b is correct.

Q: What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and…

A: Definition:  Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.