In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do not want to remain at the break-even point.

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: Which one of the following statement is not correct? Group of answer choices -Opportunity costs are…

A: Managerial accounting is helpful in decision-making related to a product whether the product should…

Q: Fixed costs are distributed, what is the profitability of the remaining services if the company…

A: Introduction:- Fixed costs are cannot be avoided. Fixed costs are distributed remaining…

Q: Break-even analysis is of limited use to management because a company cannot survive by just…

A: Breakeven analysis involves comparison of fixed cost, variable cost and sales price to derive the…

Q: With regard to the CVP graph, which of the following statements is NOT correct? a. The CVP graph…

A: Cost volume profit (CVP) graph : A cvp graph shows the break even point as the intersection of the…

Q: Which of the following statements is true regarding a company's segment margin? It is primarily used…

A: Solution: The true statement regarding a company's segment margin is that "It is primarily used to…

Q: Does using cost volume profit sensitivity analysis have any drawbacks or possible negative impacts…

A: Cost volume profit analysis is used to control or monitor a sensitive analysis which depicts changes…

Q: Would an increase in variable costs per unit cause a company’s break-even point to increase or…

A: Variable cost is an amount that changes in total in proportion to the volume produced and sold…

Q: ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can…

A: The question is multiple choice question. The question is related to Marginal Costing and is of cost…

Q: A graphic depiction of the break-even point is known as a cost-volume-profit (CVP) chart whereby the…

A: The representation of break even point in graphical form is said to be cost volume profit analysis.

Q: Comparison between incremental revenues and incremental costs is the decision base for: a.…

A: Incremental revenue and incremental cost concept means where while taking any decision , we wants to…

Q: In a multi-product company, as the mix of the products being sold changes, the overall contribution…

A: Overall contribution margin is the mix of individual contribution margin with the weights of their…

Q: Define the term "cost structure" Explain how a company's cost structure affects its break-even…

A: Answer: Cost structure: Cost structure is the total value of the various types of costs that are…

Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…

A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…

Q: When the volume of production is higher than the volume of production at break-even point, than the…

A: Answer - Correct Option is Option C) current amount of profit

Q: Describe how total variable costs and unit variable costs behave with changes in the level of…

A: Since you have asked questions with multiple sub-parts, we shall be answering thefirst 3 for you.…

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

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: Is there any way to show high net operating income without increasing sales under the absorption…

A: A method of costing that involves consideration of all the manufacturing costs for calculation of…

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: In the cost-volume-profit graph,a. the break-even point is found where the total revenue curve…

A: A graphical representation of the relationship between production costs and total sales is shown by…

Q: Explain the difference between the economist Cost-Volume-Profit (CVP) analysis model and the…

A: The difference in in economic cost value model and accountant cost value model is:- accountant argue…

Q: In making short-term business decisions, what should you do? a. Use a traditional costing approach.…

A: Business decision refers to large part of conducting business is making decisions.

Q: Analyse the diagram and following inter related concepts of break-even analysis. A. Break-even point…

A: Break Even Analysis: It is  the point  where  total cost is equal to  revenue  and It  determine the…

Q: in a cost volume profit analysis explain what happen at the break even point and why company do not…

A: Cost volume profit analysis: It is a technique that analyses the effect of cost and volume on…

Q: “Managers should consider only additional revenues and separable costs when making decisions about…

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

Q: On the cost-volume-profit graph, the area between the total cost line and the sales line before the…

A: This is part of break-even analysis.

Q: Explain how a shift in the sales mix could result in both a higher break-even point and a lower net…

A: Sales mix involves the composition of different products and some products have a higher margin of…

Q: “A company should not allocate costs that are fixed in the short run to customers.” Do you agree?…

A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…

Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…

A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…

Q: Which tool can be used to easily calculate the change in profit resulting from a change in sales…

A: Cost-volume-profit analysis: Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to…

Q: The cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Cos-Volume-Pro fit Graph

A: In the graph, X-axis shows number of units sold and Y-axis shows amount of sales. Line A denotes…

Q: The break-even level of sales represents the point where:   fixed costs, variable costs, and…

A: Break even level of sales indicates the level where total sales are equal to total cost i.e total of…

Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…

A: Breakeven quantity increases with the following changes:  Increase in amount of fixed costs,…

Q: Net operating income fluctuates directly with changes in sales volume.       Fixed production and…

A: Answer:- correct option is  Unit product costs can change as a result of changes in the number of…

Q: Which of the following is not a feature of full cost plus sales pricing related to a range of a…

A: Following is the answer to the given question

Q: The amount by which a company's sales can decline before losses are incurred is called the: degree…

A: Cost-Volume-Profit (CVP) analysis is a management tool which establishes the relationship between…

Q: Which of the following costs are always incremental and relevant in decision analysis?       a)…

A: Avoidable  costs are those costs that can be avoided if some production is stopped or outsourcing of…

Q: In cost-volume-profit analysis, what is the estimated profit at the break-even point?

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: Which of the following is not a revenue driver factor which affects sales volume for a manufacturing…

A: Revenue driver factor affects the sales volume for manufacturing firms.  Management can use the cost…

Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…

A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…

Q: Describe the differences in behavior of fixed costs, variable costs, semi-variable costs and step…

A: Fixed costs are fixed in nature, it doesn't vary with the change in units. The total fixed cost will…

Q: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…