An increase in variable costs [A] increases p/v ratio [B] increases the profit [C] reduces contribution [D] increases margin of safety

Q: When should a segment be dropped?     only when the decrease in total contribution margin is less…

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Q: Required: a. Prepare a differential cost schedule. (Select option "increase" or "decrease", keeping…

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that…

Q: The increase/decrease in variable cost from existing level to the new level is called as __cost. a.…

A: Variable cost tends to increase or decrease with increased or decreased volume of production whereas…

Q: Under variable costing, how is it possible to increase net operating income without increasing sales

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

Q: The main problem with the cost plus strategy is O incentive to show higher costs. incentives to…

A: Cost - plus pricing strategy:- A cost-plus pricing strategy, also known as a markup pricing…

Q: Which of the following is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: True (t) or False (f) ______ LIFO is inappropriate where unit costs tend to decrease as production…

A: It is known as LIFO conformity rule that if a company used LIFO for tax purpose then it must also…

Q: Fixed costs per unit increase proportionately with increases in volume of activity within the…

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Q: Select the correct statement regarding fixed costs.  A) Because they do not change, fixed costs…

A: Fixed costs are the costs that remain constant irrespective of the volume of production.

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: Fixed cost per unit of output decreases as volume increases. True or False True False

A: Any organization generally have two types of expenses - Fixed costs and variable costs. Fixed costs…

Q: Show the effects oncontribution margin of changesin variable costs, fixed costs,selling price, and…

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: When output volume increases, do variable costs per unit increase, decrease, or stay the same within…

A: Variable costs: These are the costs that proportionately change with the changes in the activity…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: The contribution margin seems to be the sum of sales income that surpasses variable expenses. In…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will…

A: The break even point is incurred when all the costs are covered by the sales and there is no profit…

Q: To increase margin of safety, the following measures can be taken O a. Increase the output O b.…

A: The margin of safety is the excess of current sales over break even sales.

Q: A favorable cost variance occurs when a. actual costs are the same as standard costs b. actual costs…

A: solution note Dear student as per the Q&A guideline we are required to answer the first question…

Q: A decrease in production will result in an increase in Total Variable Cost True False

A: Solution: Decrease in production will result in decrease in variable cost because variable cost per…

Q: The break-even point is where total sales equal total variable costs. True B) False

A: Break-even point is the point at which company’s revenues which are earned during the year are equal…

Q: Cost-Capacity calculation technique takes into account a constant exponent to relate different costs…

A: Sensitivity analysis is financial analysis that determine The potential percent gain or loss in…

Q: As the level of activity increases, how will a mixed cost behave? a. Increase in total but would…

A: Mixed costs are the combination of fixed costs and variable costs. It is crucial to determine the…

Q: The contribution margin increases when revenues remain the same and Variable cost per unit decrease…

A: The contribution margin helps the company in determining the break-even units and selling price.

Q: decrease in variable cost

A: Break even point is the level of sales at which an entity begins to generate profit. Break even…

Q: If sales volume decreases and all other factors remain constant, then the Multiple Choice   margin…

A: Margin of safety = Sales - Break-even sales Break-even point = Fixed cost / Contribution margin…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: Contribution margin is the difference of sales price per unit and variable cost per unit.

Q: Contribution margin is it Sales less cost of goods sold or Sales less all variable and fixed…

A: First of all: Sales less Cost of goods sold will give us the gross profit earned from sales. Sales…

Q: Variable costs change directly with the level of production. Select one: True False

A: Note: Since you have posted multiple questions, we will solve the first question. Please submit a…

Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…

A: Hi student SInce there are multiple questions, we will answer only first question. Since first…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: The breakeven point decreases it. O the variable cost per unit increases O the total fixed costs…

A: Break-even Point The Break-even point refers to the point of no gain or loss for the business. In…

Q: When fixed costs increase and all other variables remain unchanged, the contribution margin will…

A: The bteak even sales are the sales where business earns no profit no loss during the period.

Q: Variable costs per unit do not change when activity or production increases. Select one: O a. TRUE O…

A: Variable costs: Variable costs are those costs that change in proportion to change in the production…

Q: If a company increases its fixed costs for Product B, then the contribution margin per unit will a.…

A: Option c is the answer.

Q: When should a segment be dropped?

A: Any Segment will be dropped only when  there is increase in the Net operating income after the…

Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…

A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…

Q: The break-even point in a given situation would be decreased by an increase in a. the CM ratio. b.…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Holding all other factors constant, the break-even point will be decreased by increasing the fixed…

A: The correct answer is Option C.

Q: 1. The amount of increase or decrease in revenue that is expected from a particular course of action…

A: Differential costing is a technique where differential costs are considered relevant. Differential…

Q: Profitability changes may be simply calculated by using what kind of tool: sales…

A: The net profits are calculated as difference between sales and total expenses.

Q: At the breakeven point Select one: O a. Fixed costs will be equal contribution margin minus variable…

A: CVP analysis is done to measure the effect of change in the costs or outlays of the entity on its…

Q: If a firm changes its activity level * all costs should change variable costs should change…

A: The answers for the multiple choice questions and relevant explanation are presented hereunder :…

Q: Which of the following is correct concerning reactions to INCREASES in activity? Total Variable Cost…

A: In the question we are required to identify the effect of increase in activity on Total Variable…

Q: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: What effect does an increase in volume have on—d. Total variable costs?

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Q: All else being equal, what happens to the unit contribution margin and the contribution margin ratio…

A: Contribution margin is calculated as Sales less variable costs. Sale price is the price at which the…

Q: When variable costs increase and all other variables remain unchanged, the break-even point will: a.…

A: Break even point is that point at which business is recovering its fixed costs and variable costs.…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.