How does the cost system affect the financial position of the firm?

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

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

Q: What information is conveyed by a cost-volume-profit graph in addition to a company’s break-even…

A: Cost-volume-profit graph (CVP):   Cost-volume-profit graph is a graphical representation of volume…

Q: How do the income statements of a manufacturing firm and a service firm differ?

A: Manufacturing firm is the one which is involved in the production of the products whereas service…

Q: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business…

Q: Why do managers consider direct costs to be more accurate than indirect costs?

A: Cost: Cost refers to the expense incurred by the business to earn revenue from sales. In other…

Q: How do the costs of doing business affect prices?

A: The cost of producing a product or service that a company sells is usually referred to as the cost.…

Q: How do managers decide whether a cost is avariable or a fixed cost?

A: Cost refers to the amount of money incurred for acquiring a product or manufacturing a product. Cost…

Q: What makes POS systems different from revenue cycles of manufacturing firms?

A: POS System:   It is a system implemented in rattail sectors where the sale transaction taking place…

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

A:

Q: Describe the role that the mix of variable versus fixed costs has in the variation of earnings…

A: EBIT or earnings before interest and taxes is the company's net income before deducting the income…

Q: Can ownership structure affect earning management?

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: What is the significance of managerial economics in Accountancy?

A: Accountancy is related to summarizing, recording, classifying, analysing and bookkeeping the…

Q: Explain the concept of a contribution margin and describe how it differs from gross margin. Also,…

A: Contribution Margin represents the incremental money generated for each product/unit sold after…

Q: How do service companies differ from manufacturing companies?

A: Company:   A company refers to an artificial judicial person created by a group of individuals who…

Q: How do cost management and financial accounting differ?

A: The accounting is a process to identify, classify and record the transactions of the business and…

Q: What are the differences between cost accounting and cost management?

A: Cost Accounting: Cost accounting refers that branch of accounting, which records and analyzes 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: What is operating profit margin?

A: The operating profit is the profit earned during the year after deducting all the operating expenses…

Q: What is managerial options?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Difference of the cost price selling price and labour price of informal and formal business

A: For Difference of the cost price selling price and labour price of informal and formal business…

Q: How you relate the differential cost with management of revenue in management accounting.

A: Management Accounting is a type of accounting which is used within the company for the purpose of…

Q: What is value-chain analysis? What role does it play in strategic cost analysis?

A:

Q: Explain what cost behavious is and why it is important for business?

A: Cost Behavior is the change in the behavior of a cost (or costs) due to a change in business…

Q: What is the chief difference between manufacturing and service industry firms?

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Q: How does past knowledge of profit and loss impact your perspective on company management?

A: This Question deals with how does past knowledge of profit and loss impact your perspective on…

Q: Why would a firm want to measure profits by segment and how would common costs be allocated to each…

A: Introduction: Common costs are company expenses that are shared by numerous departments. Common…

Q: Evaluate cost factors influencing a company's decision.

A: Cost factor is the factor or an element which is related to unit of product for which some amount of…

Q: What factors explain the differences in company performance in the same industry?

A: For firms within the same business sector like Mcdonalds, Starbucks, burger king, etc in the…

Q: Difference between labour cost,cost of sales and selling price in informal and formal business

A: A formal business is a business that is well formalized and its goals are set and organized. Whereas…

Q: What is cost stickiness? Why do managers need to be aware of cost stickiness?

A:

Q: Based from the reference below discuss the sunk costs and opportunity cost in a firm.

A: Costs are those expenses which are incurred by the firm for the purpose of generating revenue from…

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: How will relating product contribution margins to the amount of the constrained resource theyconsume…

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

Q: What is a company’s cost structure? How can cost structure affect a company’s profits?

A: Company's cost structure expresses the proportion of fixed costs to variable cost. Cost structure…

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: Companies benefit greatly from the use of a standard cost system, and the statement

A: This question deals with  the use of a standard cost system, and the statemen

Q: Activity Based Costing to report product costs in financial statements

A: Activity Based Costing is a costing method to allocate overheads to products or operations or jobs.

Q: a company price goods below costs

A:

Q: what are the advantages of calculating a supplier performance index?

A: Supplier Performance Index: A supplier performance index is used to determine the total cost of…

Q: How exactly does the Net Present Value tool work and how is the IRR set within a company?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: How do companies determine target costs?

A: Identify the selling price using the market competitor.