In a product mix decision, which is the most important factor to consider in order to try to maximise profit? contribution per unit of the product product unit selling price variable cost per unit of the product contribution per unit of a scarce resource used to make the product

Q: In deciding which product lines to emphasize when a production constraint exists, the company should…

A:

Q: variable

A: Performance evaluation based on income could be best achieved by using variable costing method in…

Q: Contribution margin per unit is the amount by which a products unit selling price exceeds its…

A: Contribution margin:- Contribution margin Indicates how much money is left after variable costs are…

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: “ Managers must decide whether a product should be sold at splitoff or processed furthur.The sales…

A: No, any method that is used to assign costs to individual products that is applied to the problem of…

Q: When units produced are less than units sold, how does operating income differ between variable…

A: Absorption Costing: "Absorption costing is a method that allocates "direct labor, direct materials,…

Q: Marginal cost and marginal benefit analysis are important to compute efficient level of production.…

A: marginal analysis is generally the process of decision making which involve an examination of…

Q: When should a company use absorption costing when setting sales prices? When should it use variable…

A: Variable Costing: "Variable costing is a method that allocates only variable manufacturing costs to…

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: If the units produced exceed the units sold, which method would you expect to show the higher net…

A: Variable Costing: Variable Costing takes into account only variable manufacturing costs for…

Q: Cost-volume-profit analysis favors either variable costing or absorption costs. Why?

A: The CVP analysis is used to analyse the impact of changes in variable cost and fixed cost on net…

Q: The target costing is a cost management technique. Discuss the advantages of using this technique…

A: Definition:   Target costing: A costing system that emphasizes on the minimization of existing and…

Q: o decide whether to accept or reject special order, the manager should ensure that the order is…

A: Solution: Special order is the order which is in addition to normal sales to customers. The…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: In a multi-product company, Proportion of product sales to total sales at BEP will be equal to…

A: SOLUTION- MULTI PRODUCT COMPANY- IT WORKS BEST WHEN A CUSTOMER FOR ONE PRODUCT IS LIKELY TO BE…

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

A:

Q: When units produced exceed units sold, how does operating income differ between variable costing and…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: Activity-based costing is preferable in a system when multiple products have similar product…

A: Under activities based accounting, the overhead cost is applied to different activities differently.…

Q: The marginal cost is: Select one: a. Is the incremental cost of an activity, such as producing a…

A: Marginal cost refers to the additional cost.

Q: Which of the following is an opportunity cost? marginal cost cost of sales O lost sales cost of…

A: Introduction: Opportunity cost: Cost for the opportunity lost called Opportunity cost.

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: If a firm operates at capacity, the minimum transfer price should be the: external market price any…

A: Solution: If a firm operates at capacity, the minimum transfer price should be the "external market…

Q: What are these equations? c.Under absorption costing, what is the cost of goods sold? d.Under…

A: Hey, since there are multiple subparts posted, we will answer the first three subparts. If you want…

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 deciding which product lines to emphasize when a production constraint exists, the company should…

A: Constraint: Constraint is a factor that limits the production of a product or sale of a product.

Q: Under absorption costing, how is it possible to increase net operating income without increasing…

A: Format of Income Statement under Absorption Costing

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: if a manager constrained by limiting resource, he can be to produce those products which have the…

Q: When constrained by a limiting resource, managers often seek to produce those products which have:…

A: When constrained by some budget or limited sources managers often try to make products which lie in…

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: Explain how increasing production can increase gross profit when using absorption costing.

A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

Q: The objective of management, under absorption costing, is that each product recovers its full cost…

A: The management is interested in that product which is giving profit in return on investment.it means…

Q: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

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

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

Q: Explain the difference between variable costing and absorption costing income statements. Provide a…

A: Difference Between Variable Costing and absorption costing income statements. Under Variable…

Q: What is the estimated selling price of a product less any costs necessary to further process the…

A: Solution: Net realization value = estimated selling price of a product - costs necessary to further…

Q: If the units produced and unit sales are equal, which method would you expect to show the highernet…

A: Absorption costing:   Absorption costing is compulsory under Generally Accepted Accounting…

Q: The measure that reflects an organization's variable and fixed cost relationship and indicates how a…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

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: Which of the following statements is true when making decisions using cost-volume-profit (CVP)…

A: The contribution margin is calculated as difference between sales and variable costs. The net income…

Q: Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable…

A: -Variable cost refers to an expenditure that varies in gross dollar value as the degree of…

Q: Explain why using cost as a transfer price is inappropri-ate when the center producing the product…

A: Profit Center: A profit center may be a part of a business that is expected to form an identifiable…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as net…

Q: What is the differential cost to produce product Zeta?

A: Given information is: Cost of producing Alpha = $23 per unit Additional cost of producing Zeta = $25…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.