Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either product or period with respect to production or sales volume within the relevant range of operations. True False

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: 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: A traditional income statement classifies costs by function; costs are classified as either product…

A: The question is related to Classification of cost. The traditional income statement classifies costs…

Q: CVP analysis is most important for the determination of [A] sales revenue necessary to equal fixed…

A: Cost: It refers to the economic value incurred by the company for producing a product or service.

Q: Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis?…

A: Under CVP analysis, the effect of variable cost and fixed cost on profitability is to be determined.…

Q: TRUE OR FALSE The use of absorption costing facilitates contribution margin approach in preparing…

A: Performa of income statement under absorption costing Particulars  Amount Sales  - Less :…

Q: State the uses of Marginal Costing technique in decision making process. How CVP( cost volume…

A: CVP refers to cost volume profit analysis. It is calculated to find out the break-even

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: Gross profit is disclosed on an income statement prepared using O a) Variable costing. O b)…

A: Gross profit is disclosed on an income statement prepared using Direct Costing method.... Option C…

Q: Product costs are ordinarily found in the traditional Income Statement's Operating Expenses whereas…

A: Product costs are those costs which are incurred on specific products like material cost, labour…

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: Absorption costing is intended for Select one: O a. None of the above O b. Outside distribution or…

A: Absorption Costing:-It refers to the method of costing to account for all the costs of…

Q: Describe the difference between the units sold approach to cvp analysis and the sales revenue…

A: Sales can be defined as the source of earning to the business entity out of the sale of inventory…

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: The product costs are the cost that are incurred to produce a product directly or indirectly.

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

Q: The term relevant range in cost accounting means the range over which a. Cost may fluctuate. b. Cost…

A: Cost accounting is that branch of accounting in which all costs incurred on manufacturing and…

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: 1. Variable costing enables more efficient: * Cost-volume-profit (CVP) analysis. External reporting.…

A: Variable costing is also written as marginal costing. It is developed from the concept marginal cost…

Q: When using the total cost concept of applying the cost-plus approach to product pricing, what is…

A: Answer In total cost concept  of applying  cost plus approach  of product pricing , the total cost…

Q: An allocation base! O a. is a measure used to assign prime costs to products and services O b.…

A: An allocation base is the basis on which Cost accounting allocates overhead costs.  An allocation…

Q: Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The…

A: It is given that :- Revenue function: R =890Q ‒5.5Q2 profit-maximizing price: P=494 OMR

Q: Cost accounting is an area of accounting concerned with cost determination, cost control and cost…

A: solution : Cost accounting is an area of accounting concerned with cost determination, cost control…

Q: When production exceeds sales, the net operating income reported under absorption costing generally…

A: The income statement is prepared to estimate the net profit or loss incurred during the period.

Q: Which of the following statement is false?         Multiple Choice   a)The contribution margin…

A: Ans. Absorption costing allocates fixed manufacturing overhead to a product whether or not it is…

Q: In CVP Analysis, total costs are defined as costs derived from product costs and period costs. TRUE…

A: Cost-volume-profit analysis is used to determine how the company's profit has been affected due to…

Q: Which of these is not an objective of Cost Accounting? O a. Ascertainment of Cost O b. Cost Control…

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

Q: 1-Why is it important to distinguish cost incurrence from locked-in cost? 2- How do companies…

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

Q: The following are nine technical accounting terms introduced or emphasized in this chapter. Transfer…

A: Contribution Margin = Sales -Variable Cost

Q: Explain cost concepts it is relevant for the company to be aware of in decision situations such as.…

A: Here discuss about the details of the various costs which are incurred to the business entity which…

Q: tatement is true or false, and correct the false tatement(s): Manufacturing cost is called period…

A: Manufacturing cost is the cost incurred to manufacture units . It includes direct material , direct…

Q: "Simplification of all costs into only fixed and variable costs distorts the actual cost behavior…

A: Introduction:- There are four basic cost behavior patterns as follows:- fixed costs variable costs…

Q: В. Explain the following: Product costs and Period costs and one example of each. Distinguish…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis -   generally cost volume profit analysis is used to determine the…

Q: One of the primary uses of a cost of production report is to assist management in controlling…

A: Production Cost Report:   A production cost report is used by the firm to summarise the production…

Q: How does assuming that operating activity occurs within a relevant range affect cost-volume-profit…

A: C-V-P analysis is used to explain the relationship among the volume of production, costs and…

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing, what…

A: Overhead Costs: Overhead costs are business expenses that cannot be associated or traced directly…

Q: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.

A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…

Q: In Classification Of Cost, What Is A Business Situational Example of the ff:

A: Cost refers to the amount spent by the business on the purchase of raw materials, supplies,…

Q: Describe different types of cost behavior in relation to production and sales volume.

A: Introduction: Cost behavior: Cost behavior refers to the indicator that reflects the information…

Q: Which of the following is NOT correct about the classifications of costs? Select one: a. On the…

A: Costs in the business can be classified into different types like on the basis of time, on the basis…

Q: Statement 1: Cost Accounting relates to the conventional costing methods and techniques in…

A: Cost accounting is a branch of accounting which focuses mainly on production related activities.

Q: On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total…

A: The cost volume analysis is used to find break even sales or desired Revenues to earn desired…