Distinguish between the sales value at splitoff method and the NRV method

Q: What assumption is usually made concerning sales mix inCVP analysis?

A: Sales mix: A proportion of two or more products sold by the company to maximize the profit, that…

Q: The focus of a sell or process further decision is Select one: a. incremental cost. O b. incremental…

A: Introduction: Incremental cost : Its an extra cost for producing the unit.

Q: Income statement format that separates cost of goods sold into categories? Select one: a. Detailed…

A: The multiple-step income statement shows the cost in a separation method. So that we can easily…

Q: Define the term sales mix.

A: The sales mix is a calculation that determines the proportion of each product a business sells…

Q: How are the floor and ceiling limits calculated as per the lower of cost or market (LCM) method…

A: LCM that is lower of cost or market value method says that inventory should be valued at a price…

Q: Under what circumstances is relative sales value anappropriate basis for determining the price…

A: Relative sales value is an appropriate basis for pricing inventory when a group of changing units is…

Q: Sales data would be considered to be examples of __________ data. Multiple Choice ordinal interval…

A: Ratio data mean that quantitative data which can be written as percentage or ratio and can be better…

Q: Describe a situation in which the sales value at splitoff method cannot be used but the NRV method…

A: Relative Sales Value at Split off Method: Relative sales value at split off method allocates joint…

Q: 7. Distinguish between the sales value at splitoff method and the NRV method.

A: Solution:- Explanation of distinguish between the sales value at split off method and the NPV method…

Q: Describe the difference between the unit-soid approach to the cvp analysis and to the sales revenue…

A:

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

A:

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: Discuss the effect of absorption and marginal costing on inventory valuation and profit…

A: Absorption costing also written as full costing. Under this method, all costs are considered in…

Q: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: Distinguish between the sales values at splitoff method and the NRV method.

A: Sales value at split-off method: Sales value at split-off method allocates joint cost to each joint…

Q: ferent between Informal and formal cost of sales

A: Step 1   The cost of sales is the amount of all expenses incurred in the production of a product or…

Q: WHAT IS THE COST OF SALES?

A: Cost of sales in the business means all costs that are directly incurred for the manufacturing of…

Q: What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP…

A: Sales mix of a product is the proportion of a product sales in overall sales of the company. A…

Q: What is the preferred order of reconciliation? cost, sales, income O income, cost, sales sales,…

A: Income is defines as total costs of the project deducted from total sales from the project.

Q: Which of the following transfer price approaches is used when the transfer price is set at the…

A: Transfer Price  : Price at which related parties transact with each other is known as transfer…

Q: Determine which of the following two alternatives is the most efficient and which is the most…

A: Internal Rate of Return: It is the rate at which a project's or investment's net present value…

Q: Explain how negotiation between the supplying and buying units may be used to set transfer prices.…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Why does the sales value at splitoff method use the sales value of the total production in the…

A: Split-off Point: Split-off point is the point in production process where joint products are capable…

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: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…

Q: Explain the term sales value at splitoff method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Determine the amount of joint cost allocated to each product if the sales value at splitoff method…

A: Computation of joint cost allocated based on split off is shown below :

Q: How can the expected sales for a product group be converted into ex

A: A product group is a collection of various products, classes of products, segments, etc which are…

Q: Describe Estimating Supplier Costs Using Reverse Price Analysis?

A: Reverse pricing analysis is a pricing model which allows its consumers in order to establish the…

Q: what is the cost of sales?

A: Cost of sales are the cost incurred for producing the goods which is sold. The concept related to…

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: Describe the approaches to estimate stand-alone selling prices.

A:

Q: Calculate gross profit percentage and return on sales ratio

A: The formula to calculate the given ratios are: