what is meant by the term break-even point? why should a manager be concerned about the breakeven point snd what helps them study the breakeven analysis

Q: how to compute break even on a business plan?

A: Break even point is basically a point where the total cost is  equal to total sales and thus there…

Q: T. Turnover due to low job satisfaction may be desirable if it facilitates the introduction of new…

A:

Q: Managers often assume a strictly linear relationship between cost and the level of activity.Under…

A: There are 3 main types of cost: a. Variable cost b. Fixed cost b. Mixed Costs Variable costs are…

Q: 1)What is cost behavior analysis? and Why is cost behavior analysis important to management?…

A: A break-even point is a point or number of units at which all the revenues generated by the company…

Q: Give an example of how a manager can decrease variable costs while increasing fixed costs?

A: Variable Cost: Variable costs are costs which are directly vary with the change in production.…

Q: Which of the following is NOT true about the cause-and-effect criterion when estimating a cost…

A: The cause and effect analysis is one of the factors for making cost allocation decisions. The cost…

Q: What is turnover? What does it measure? Describe this in your own words. Writing a formula is not a…

A: What is the Turnover   Turnover is the Gross sale made by the company. A company may selling the…

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

A: Break even point is where fixed cost and variable cost are equal to selling costs it gives an…

Q: Discuss how break even analysis can aid management in decision-making.

A: Break-even analysis is a quantitative approach used by management and analysts to determine the…

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: Company X sees a disruption in its supply chain at the same time it sees a decrease in customer…

A: A supply chain network is an organization of individuals, associations, and exercises that move an…

Q: 4. What is a Break-even Point and why do managers calculate it?

A: Generally, The Break-even point is where there is no Preofir and No loss.  At this point, companies…

Q: Which of the following explains why managers compare the budgeted costs to actual costs?   a.…

A: Managers measures budgeted expenses at the end of the year and provide an average of the costs that…

Q: “Managers will always choose the alternative that maximizes operating income or minimizes costs in…

A: Operating income: Income that is derived from business revenues after deducting operating expenses…

Q: What is a possible break-even analysis scenario in the resturant industry?

A: Break-Even Point (BEP)- The calculation of Break-even is a common business practice to be informed…

Q: How can a company with multiple products compute its breakeven point?

A: Break-even is a point of sales where revenue generated is equal to the total costs. Break-even point…

Q: What are accruals? How much control do managers have overaccruals?

A: Accruals: Accruals are the revenues that are earned but not received, and expenses that are incurred…

Q: minimize overall risk

A: A manager has to make different decisions related to choosing a project.  A project giving a higher…

Q: What is the difference between an accounting break-even and a break-even NPV? Which will offer the…

A:

Q: a) Explain how differential analysis assist managers in evaluating special order decisions? (No…

A: a) Special order refers to a unique one-time order made by a customer(usually one-time)…

Q: Managers often assume a strictly linear relationship between cost and volume. How can thispractice…

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

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: Products Breakeven Product A Product B

A: Break-even point: The Break-even point is the level of activity where there is no profit or loss…

Q: In what way can the use of ROI as a performance measure for investment centers lead to bad…

A: ROI:   It is a measure on the amount of return on a particular investment with respect to the…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A:

Q: “When evaluating a company’s performance on the time dimension, managers should only consider…

A:

Q: Why might relevant costs analysis be bad for a company if used too frequently?   Multiple Choice…

A: Introduction: In managerial accounting, avoidable expenses that are only incurred in conjunction…

Q: Discuss the importance of calculating Break-even point for any organization

A: A break-even analysis is an economic tool which is used to determine the cost structure of a company…

Q: What is the difference between an accounting break-even and a break-even NPV? Which will offer the…

A: Break-even point = Total Fixed Costs / Contribution margin per unit   Break-even ratio = Annually…

Q: Criticisms of return on investment as the only performancemeasure include:a. ROI focuses on…

A: Return on investment is a measure used compare the benefit received by the investors when compared…

Q: What is the company's break-even point,

A: Break-even point is that point where profit or loss of the company is zero which means that the…

Q: Give an example of how a manager can increase variable costs while decreasing fixed costs?

A: Fixed costs refers to those which do not change according to the change in units of productions.…

Q: Which of the following statements are false?  SELECT ALL THAT APPLY a. One of the dangers of…

A: Relevant cost seems to be a word used in managerial accounting to indicate avoidable expenditures…

Q: a cost that is irrelevant when making managerial decision O fixed cost O opportunity cost O…

A: Cost means the amount spent on doing some business or activity.

Q: A company with an advanced manufacturing environment typically will have a higher break-even point,…

A: Advanced manufacturing environment: It can be defined as a situation where a strong competition…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Production managers are not concerned about the capacity because capacity creation does not require…

A: Production managers are those who are mainly involved in the production planning.

Q: Give an example how manager can decrease variable cost while increasing fixed cost

A: Cost behavior: Cost behavior is the relationship between cost and activity and it is relevant to the…

Q: way a manager could improve turnover

A: Turnover is a important term used in accounting, taxation and business. The success of the business…

Q: What questions should managers answer when considering dropping a product or segment?

A: Drop or Keep Decision: When a product or segment of a business is costing more money than earning,…