In Cost-Volume-Profit analysis, it is an important assumption that all units produced are sold; in other words, number of units produced is as sumed to be equal to number of units sold. Select one: 1.True   2.False

Q: The amount of revenue required to earn a target profit is equal to Total fixed cost divided by…

A: The break even sales are the sales where business earns no profit no loss.

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: The margin of safety is equal to:

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of the…

Q: The variable cost ratio is calculated as: O a. Selling price per unit - the variable cost per unit O…

A: Variable cost: It can be defined as the cost that varies or changes with a change in the activities…

Q: All of the following represents a cost-volume- profit relationship except: a. Total contribution…

A: Cost profit volume analysis relationship shows how the profit of a entity changes due to change in…

Q: Listed below are nine technical accounting terms introduced in this chapter:Variable costs Relevant…

A:

Q: On a CVP graph, the intersection of the sales revenue line and the total cost line is known as the:…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: Select the correct statement concerning the cost-volume-profit graph at right: a. The point…

A: BEP: (Break-even point) It is the number of units that are sold that could result in a situation of…

Q: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: when total contribution margin equals total fixed cost this indicates operating income true false

A: First we understand contribution margin Contribution margin means Variable cost   deduct from Sales…

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

A: CVP is also known as Cost volume relationship which says that how much sales and  profits will…

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: The variable cost ratio is calculated as? .a the selling price per unit/the selling price per)…

A: Variable cost ratio = Variable cost per unit / Selling price per unit

Q: The total contribution margin is equivalent to the combined net profit and fixed costs. It can be…

A: Solution: The total contribution margin is equivalent to the combined net profit and fixed costs =…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: contribution margin is sales made less variable cost incurred is contribution margin

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

A: Cost volume profit analysis is also known as CVP analysis. It shows how profits of the organisation…

Q: The three most common cost behavior classifications are a. variable costs, product costs, and sunk…

A: Cost volume profit analysis includes various techniques that help in the decision-making of the…

Q: Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The…

A: It is given that :- Revenue function: R =890Q ‒5.5Q2 profit-maximizing price: P=494 OMR

Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…

A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…

Q: Unit cost is the same as average cost of a product or service O A. True B. False

A: Unit cost is the cost of making or selling one unit. It includes direct material cost per unit,…

Q: Which one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: TRUE OR FALSE Net income under variable costing method and absorption costing method are always the…

A: If there is change in the ending inventory, net income will be different in both the methods.

Q: Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed…

A: Contribution margin means sales revenue which is earned over variable costs of the business.…

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

A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…

Q: Cost-volume-profit (CVP) analysis is based entirely on unit costs.” Do you agree? Explain.

A: Cost-volume-profit (CVP) analysis represents the method of cost accounting that shows the impact…

Q: A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

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

A: Cost - volume - profit analysis  It is used to determine the changes in cost and volume of sales…

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio /variable cost…

A: Contribution Margin Ratio: The contribution margin ratio shows the amount of difference in the…

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis -   generally cost volume profit analysis is used to determine the…

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: Question 1 On the cost-volume-profit graph, the area between the total cost line and the sales line…

A: Cost-volume-price (CVP) analysis is a way to find out how changes in variable and fixed costs affect…

Q: A company can use cost-volume-profit analysis to determine the level of sales required to earn a…

A: CVP Analysis Equation Profit = Revenue – Fixed Costs – Variable Costs

Q: The contribution margin ratio is calculated as: a. None of the given answers b. Selling price per…

A: Contribution margin is the sales revenue over and above its variable costs. Contribution margin =…

Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Contribution…

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: The variable cost ratio is calculated as: a. None of the given answers O b. The selling price per…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

Q: The variable cost ratio represents  The proportion of variable costs in relation to net income The…

A: Solution : The variable cost ratio represents  Correct answer is Option 3 . The proportion of…

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: Which of the following does not represent a cost-volume-profit analysis equation? O a. Contribution…

A: Contribution = Sales - Variable expenses Profit = Contribution - fixed expenses

Q: The contribution margin ratio is calculated as: O a. The selling price per unit ratio / variable…

A: Contribution is the amount obtained after deducting the variable costs from the sales.

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: Please explain this statement thoroughly.  "To estimate what the profit will be at various levels…

A: The point at which an entity is at no profit no loss situation, that point is the point of…

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: 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: Unit contribution margin is the amount that each unit sold contributes towards the recovery of fixed…

A: Hi student  Since there are multiple questions, we will answer only first question.

Q: On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total…

A: The cost volume analysis is used to find break even sales or desired Revenues to earn desired…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.