The line that begins at the origin on a CVP graph represents     total expenses.     total fixed expenses.     total sales revenues.     both the total expenses and the total sales revenues.

Q: Which of the following is correct? The break-even point occurs when: Select one: a. total variable…

A: Break even point is the point where the production level at which the production costs equal to the…

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

A: Cost volume profit analysis enables the management in determining the relation of costs and revenues…

Q: Choose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit…

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

Q: Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is…

A: Option E is the correct answer i.e Cost can be Divided into variable and fixed components.

Q: The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding…

A: Cost volume profit analysis - This analysis shows how a change in variable cost and change in fixed…

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

A:

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 method results in a more realistic amount for income because it matches the most current costs…

A: The current costs is based on the purchasing of the latest products which means the having book…

Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…

A: Cost volume profit analysis: It can be defined as the technique of accounting that is used by the…

Q: In determining cost behavior in business, the cost function is often expressed as Y=a+bX. Which one…

A: There are two types of costs in the business, one is fixed costs and other is variable costs. Fixed…

Q: Which one of the statements on coupled and decoupled payment programs is NOT true? Coupled payments…

A: Since you asked multiple question, we will provide answer of first question only as per guidelines.…

Q: statement below. The point where total sales revenue equals total cost Drag answer here Fixed…

A: The contribution margin is computed as excess of sales revenue over variable expenses. The break…

Q: 1. Relevant of differential cost analysis a takes all variable and fixed costs into account to…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following statements related to CVP chart is not true? a. None of the given answers. O…

A: Cost volume profit chart is the chart which shows total cost line, total revenue and profit for all…

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: 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: 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 a true statement? O The mark-up is designed to cover all non-product…

A: Answer: only a and c above The markup method is commonly used in pricing restaurant food menus and…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: To find: which of the following statement is true

Q: Employee training is an example of discretionary fixed costs. Select one: True False

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

Q: Which is the true statement?   The CVP income statement shows contribution margin instead of gross…

A: The CVP Income Statement or the Cost- Volume- Profit Income Statement is almost similar to the…

Q: Relevant of differential cost analysis takes all variable and fixed costs into account to analyze…

A: Differential cost analysis is the difference in cost for every alternative which helps in making the…

Q: Which one of the following is not an assumption of CVP analysis?   The behavior of costs and…

A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…

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: Which of the following statement is CORRECT about the foundational assumption used in CVP analysis.…

A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: Which of the following is the indicator of the rate at which company is earning profit? Select one:…

A: Ratio Analysis Each  items in the financial statements of an enterprise is compared by using ratio…

Q: Which of the following is true regarding the contribution margin ratio of a company that produces…

A: Contribution margin is one of the important terms under the Cost Volume Profit analysis.Contribution…

Q: the following best explains the difference between the two points on the graph? * Q O The area of…

A: The cost volume profit analysis is performed to represent the effect of different cost on Income and…

Q: Which of the following is a correct definition of the margin of safety? The excess of contribution…

A: Margin of safety: Margin of safety is the point at which company makes profit. In other words Margin…

Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…

A: The graphical representation of the cost-volume benefit analysis is a cost volume profit graph, also…

Q: Cost-Volume-Profit graph contains an "Area of Loss" and an "Area of Profitability". Which of the…

A: Meaning of Cost Volume-profit graph Cost Volume profit graph is also shortly called as CVP graph. It…

Q: Which of the following statements about CVP analysis is false? O a. The CVP analysis assumes that…

A: Cost Volume Profit (CVP) analysis is only accurate if costs are kept constant within a given…

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: T, F. In a make or buy short-run decision situation, the critical element to consider is whether the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: If a company chooses a price to charge for its product by adding up all the expenses necessary to…

A: Solution: There are various method of pricing the product such as: 1. Target costing 2. Skimming…

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: 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: When applying lower of cost or net realizable value under the FIFO, average cost, or specific…

A: The lower of cost or net realizable value method says we should record the inventory at market price…

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: Variable costing has an advantage over absorption costing for which of the following purposes? all…

A: Under variable costing, the product cost consists of the variable cost incurred and total fixed cost…

Q: Which of the following best describes an "opportunity cost"? Group of answer choices costs that were…

A: Opportunity cost is the loss of the benefit which is forgone to choose the best possible…

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

A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…

Q: Which of the following is not an assumption underlying cost-volume-profit analysis?

A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…

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

A: Option b is correct.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.