Define the term gross profit margin. Explain several waysin which management might improve a company’s overallprofit margin.

Q: Contribution margin ratio definition and how is useful in planning business operations?

A: Solution:- Contribution margin ratio definition as follows:-

Q: Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a.…

A: Answer: Concept: Cost accounting is defined as the accounting system which helps to analyze the cost…

Q: The systematic examination of the relationships among selling prices, volume of sales and…

A: It is significant for every busines to analyse the quantity to be sold for achieving break even and…

Q: It measures the performance of company managers in term of generating profit from operations.

A: Profit from operations refers to the profit that a business or a company earns by selling its goods…

Q: Write an alternative action for the company your own, to improve the performance, compute the change…

A: Whenever you've got distinguished and calculable your key profit drivers, you need to produce…

Q: Which statement below best describes a profit center?a. The authority to make decisions affecting…

A: Answer c. The authority to make decisions over the most significant costs of operations, including…

Q: In evaluating the profit center manager, the operating income should be compared a.across profit…

A: Operating income is the amount of money earned by an entity from its operations.

Q: measurement considered as financial rather than non-financial measures includes all of the…

A: Financial measures of performance measurement means methods by which performance of the organisation…

Q: What is Operating Profit Margin and how is it Calculated? What is a high quality of earnings?

A:

Q: give an example of profit measurement in managerial accounting that fulfill a situation

A: Objective Managerial accounting Maximization of profit and minimization of losses  are the main…

Q: “The traditional income statement format arranges the data in a way that allows management to more…

A: Income Statement - It is a financial statement that shows income and expenditure of the company for…

Q: Evaluate the following statement: Do the ends of positive organizational consequences justify the…

A: Earning management is an accounting device that is used to produce the economic statements showing…

Q: Why do many operating managers prefer a contribution income statement instead of a traditional…

A: Traditional income statement: Traditional income statement is a financial statement that shows the…

Q: What is the meaning of contribution margin ratio? How is this ratio useful in planning…

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Q: The strategy that the company could take to maintain the competitive advantages are Cost Leadership,…

A: Competitive advantage refers to factors that allow a company to produce goods or services better or…

Q: Which method might you prefer if you were a manager and your bonus was tied to a financial…

A: In organization, there are two type of inventory system followed. (1) Periodic inventory system (2)…

Q: Discuss how the behavior of division managers is likely to be affected by the use of: a. Return on…

A: Division managers provide leadership and assistance to their team members. It provide guidance and…

Q: Compute profit margin and describe its use in analyzing company performance.

A: Profit margin indicates how many cents of profit generated for each dollar of sale. It measures the…

Q: What variable affecting gross profit should the manager focus his attention? Why?

A: Gross Profit is the profit arrived at by deducting cost of goods sold from the turnover or the…

Q: “A financial productivity measure contains more information than an operational productivity measure…

A: Introduction: Operational productivity is the ratio of output units to input units, and physical…

Q: Discuss and give reasons as to why a business would want to use non-financial performance measures…

A: Non Financial Measures: Non Financial measures are the measures which cannot be expressed in…

Q: Which of the following statements best describes a profit center?a. The responsibility for combining…

A: The profit center affects the major profit decisions of the authority that includes the choosing…

Q: What advice would you give those who want to invest in this company? (recommendations)  (based on…

A: Before investing in any companies’ securities, performance and growth is evaluated by considering…

Q: what is the segment margin of Department A and B?

A: Formula: Segment Margin= Segment Revenue- Segment Cost Segment Margin (%)= Segment Revenue-Segment…

Q: What is the relationship between contribution margin and responsibility margin? Explain how each of…

A: Contribution Margin: The contribution margin is the excess of selling price over the variable costs…

Q: When conducting a cost-volume-profit analysis determine where the most challenges for accountant…

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…

Q: Calculate the profit margin ratio for each company.

A: We know that profit margin ratio is the percentage revenue that is left out to the entity after…

Q: What are the factors of incremental analysis such as relevant costs, opportunity costs, and sunk…

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Q: How would non-financial performance indicators help to improve the performance of the company?…

A: Introduction: In its most basic form, non-financial performance metrics give information on a…

Q: What is an operational productivity measure and a financial measure?

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Q: How is Profit Margin calculated and what does It measure?

A: Note: Since you have asked multiple questions, we will solve the first question. To get the…

Q: Explain the efficiency perspective and the opportunistic perspective of Positive Accounting Theory.…

A: Positive accounting:   It is referred to as the branch of accounting research that helps to explain…

Q: What is meant by customer-profitability analysis? Give an example of an activity that might be…

A: Customer Profitability Analysis:  It is the process of ascertaining the amount of revenue earned…

Q: Describing the balanced scorecard and identifying key performance indicators for each perspective…

A: Financial Perspective: The financial perspective includes the indicators such as return on…

Q: Build an influence diagram that illustrates how to calculate profit.

A: Profit : Every business motive is to earn profit.  Profit is generally earned when the business…

Q: Using performance reports to evaluate cost, revenue, and profit centers Management by exception is a…

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Q: What profit-based pricing approach should a manager use if he or she wants to reflect the percentage…

A: Profit grounded pricing strategy is the approach which involves setting the prices for the product…

Q: Select all of the formulas below that will correctly get you the Return on Investment. Operating…

A: As per authoring guidelines the first question is answered. Please re-post remaining question for…

Q: How can you show how efficiency ratios can be used to determine the best way to conduct the…

A: Lets understand the basics. Ratios are calculated by the management to compare the company's current…

Q: components of the Contribution Margin Income Statement, how does management use this in the decision…

A:

Q: Define Profit margin on sales.

A: Financial ratios are used to interpret the financial statements. Each financial ratio helps in…

Q: Which of the following gives the basic factors of business operations of which their…

A: Cost volume profit relationship in the business says that there is a relationship exists between…