Contribution margin is sales less Star

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

A: The correct answer is Option (a).

Q: Operating profit is affected by changes in production under both the variable costing and absorption…

A: Operating profit is profit earned by the company from its primary or core purpose of the business.…

Q: When units sold exceeds, units produced, basis a. net income under absorption costing is higher than…

A: Absorption is an important method of costing in Accounting System. It refers to those costs which…

Q: What is the difference between absorption costing and variable costing? 2. Distinguish between…

A: Cost accounting:  It is a part of managerial accounting  and is used to record  total cost of…

Q: Margin of safety is computed as Select one: O a. Contribution margin - Fixed costs O b. Breakeven…

A: Margin Of Safety is the difference between Break Even Sales and Actual Sales

Q: The amount of a unit’s sales price that helps to cover fixed expenses is its ________.A.…

A: There are two type of costs being incurred in business. One is fixed costs and other is variable…

Q: Contribution margin Select one: a. None of the answers are correct O b. excludes variable selling…

A: Contribution margin: Difference between the sales and the variable costs is called contribution…

Q: The margin of safety is equal to:

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

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: Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is…

A: Option E is the correct answer i.e Cost can be Divided into variable and fixed components.

Q: Under the contribution income statement, a company’s contribution margin will be: Higher if fixed…

A: Contribution margin:

Q: To calculate the sales dollars necessary to achieved a desired profit level, the sum of fixed costs…

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

Q: When units produced exceeds units sold, a. net income under absorption costing is higher than net…

A: If units produced > units sold There will be ending inventory. Some part of the fixed factory…

Q: Contribution margin is a. another term for volume in the "cost-volume-profit" analysis b. the same…

A: As posted multiple independent questions we are answering only first question kindly repost the…

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: The unit contribution margin is calculated as the difference between: a. selling price and fixed…

A: 1) Option B is correct i.e.  selling price and variable cost per unit. Reason :- Unit contribution…

Q: Which statement is TRUE? An absorption costing income statement calculates gross profit; a variable…

A: Absorption costing: Its also called as Full costing. Absorption costing is used for the purpose of…

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: Which one of the following is not correct about variable costing systems? Select one: O a. Focuses…

A: Variable costing: Under this method refers to the cost technique under which only variable costs are…

Q: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…

A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…

Q: Under variable costing, which of the following costs are assigned to inventory?  Variable Selling &…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following would most likely decrease the product cost per unit under variable costing?…

A: Under variable costing, product cost per unit will comprise of direct material cost , direct labour…

Q: Under the contribution income statement, a company’s contribution margin will be: a. Higher if fixed…

A: Contribution margin: Contribution margin is the excess of selling price over the variable costs of a…

Q: Under the contribution income statement, a company's contribution margin will be higher if? A…

A: Contribution is the excess of the sales revenue generated during the year over the variable cost…

Q: East Coast West Coast Sales V Variable cost of goods sold v Manufacturing margin v Variable selling…

A: Contribution means sales minus varibale cost and when we divide contribution with sale , we get…

Q: Under the contribution income statement, a company's contribution margin will be lower if? Fixed…

A: A break-even point is a point where the company incurs no loss and no profit. The contribution…

Q: TRUE OR FALSE Net income under variable costing method and absorption costing method are always the…

A: If there is change in the ending inventory, net income will be different in both the methods.

Q: Using the given data…find the answers for Formulas 1-10.  Sales  Variable manufacturing cost Fixed…

A: Sales = Selling price per unit * number of sold units = 30*80000 = $24,00,000 Variable manufacturing…

Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…

A: Break-even point: The point of sales where the situation of No Profit No Loss comes is called…

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: . Which of the following is the best definition of a variable cost? A. A variable cost is one which…

A: Variable costs are the costs that vary on the basis of the level of output. They are determined per…

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: True or False Product cost under Variable costing are DM, DL and VOH only.     Under absorption…

A: Solution:- Discussions of above statements as follows under:-

Q: Contribution margin per unit is the amount by which a product's unit selling price exceeds its…

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…

Q: Which of the following is true of a variable cost? Total variable cost remains constant with…

A: Variable cost: It a cost that changes in total as a response to change in one or more cost drivers,…

Q: Break-even is the number of units at which? a. total revenue equals price times quantity b. total…

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

Q: Sales Less: Cost of goods so Fixed overhead cos Variable production Cost of goods sold Gross margin…

A: The question is based on the concept of Cost Accounting.

Q: EOQ focuses on the trade-off between A) carrying costs and delivery costs B) seasonality and steady…

A: EOQ is economic order quantity at which cost is minimum. Total cost consist of cost of order and…

Q: Which of the following statements is true for a company that uses variable costing?  Profit…

A: Profit fluctuates with sales  Profit increases with increases in sales and vice versa.  Product…

Q: Under variable costing, all fixed costs (including fixed product costs) are expense in the period…

A: The matching principle is the fundamental concept of accounting. It suggests that the expenses…

Q: Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover…

A: Variable costs are those costs that change with the change in the activity level. On the other hand,…

Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Under variable costing: a. Net operating income will always be higher than under absorption costing.…

A: Under variable costing, the inventory cost is valuate on the basis of variable manufacturing cost…

Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…

A: CVP analysis estimates the how much the changes in a company's cost, both fixed and variable, sales…

Q: When units produced are less than units sold, income under absorption costing is higher than income…

A: The income statement can be prepared using various methods as variable costing and absorption…

Q: What is happening to average costs when marginal cost is greater than average cost at a specific…

A: When marginal cost is greater than average cost (including average variable cost or average total…

Q: A cost that would be included in product costs under both absorption costing and variable costing…

A: The key difference between variable and absorption costing approaches is that while absorption…