When constrained by a limiting resource, managers often seek to produce those products which have: Question options: a)The highest selling prices. b)The lowest average cost per unit. c)The highest contribution margin ratios. d)The highest contribution margin per unit of limiting resource.

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

A:

Q: The concept of operating leverage involves the use of __________ to magnify returns at high levels…

A: Introduction: Usually, an operating leverage is a measure of the extent to which a mixture of the…

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: “Management should always maximize sales of the product with the highest contribution margin per…

A: Yes, the given statement is correct.

Q: Which of the following is NOT a use of CVP (Cost-Volume-Profit) analysis? a.what is the impact on…

A: SOLUTION- CVP ANALYSIS IS USED TO DETERMINE HOW CHANGES IN COSTS AND VOLUME EFFECTS A COMPANY'S…

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opportunity Cost:Opportunity cost is total of potential income and other benefits that are lost due…

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

A: Introduction:- Under the Variable costing includes only variable manufacturing costs such as  direct…

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: 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: . What is the difference between variable and fixed costs? Also explain how the total variable cost…

A: " Since you have posted more than two questions and not specified which should be solved so we are…

Q: Hi, can you find pro and cons on this statement? And please explain in detail. Production surpluses…

A: Fluctuating demand  In reaction to shifting economic conditions and consumer spending trends, demand…

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: “Companies should always make and sell all products whose selling prices exceed variable costs.”…

A:

Q: To increase margin of safety, the following measures can be taken O a. Increase the output O b.…

A: The margin of safety is the excess of current sales over break even sales.

Q: “Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of…

A: Indirect cost pool refers to the accumulated cost that jointly benefits two or more costs…

Q: CVP analysis using activity-based costs will tend to shift some costs from fixed to variable…

A: CVP Analysis:   CVP analysis establishes the relation between cost, volume and profit of the…

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: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: Special order, opportunity cost. In order to determine whether a special order should be accepted at…

A: Opprtunity cost should be consider while accepting special order. As order is received at full…

Q: How does Lean Production reduce or eliminate the difference in reported net operating income between…

A: Absorption Costing: Absorption costing is a method for calculating the full cost or total cost of a…

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: Is activity-based costing always beneficial to an organization? in what situations would itb…

A: Activity based costing is a system of costing in which  allocated on the basis of activity done .it…

Q: Write “True” if the statement is true and write “False” if the statement is false A fixed cost is…

A: Variable cost includes: Direct material Wages Direct labor cost Commission on sales Fixed cost…

Q: Target costing A target cost is 'a product cost estimate derived by subtracting the desired profit…

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

Q: Why is an incremental analysis necessary when conducting a rate of return analysis for cost…

A: Incremental analysis considers only the relevant cash flows and it does not consider the…

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: In a product mix decision, which is the most important factor to consider in order to try to…

A: Product mix decision includes the decision related to the adding or eliminating of the product…

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 one of the following statements is correct? O a. Avariable cost is a cost whose cost per unit…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed 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: 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: How will relating product contribution margins to the amount of the constrained resource theyconsume…

A: Definition: Contribution Margin: The process or theory which is used to judge the benefit given by…

Q: Which of the following statements is true?   a. When production is greater than sales, operating…

A: The question is based on the concept of Cost Accounting.

Q: if we produce goods over the capacity, should we consider the fixed marketing cost and variable…

A: Fixed marketing costs is fixed costs related with the marketing of the product and this will not be…

Q: Consider a situation in which a firm needs to make a decision regarding the resources to allocate…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Profitability changes may be simply calculated by using what kind of tool: sales…

A: The net profits are calculated as difference between sales and total expenses.

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: 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: 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: 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: 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: What effect does an increase in sales price have on contribution margin? An increase in fixed costs?…

A: Contribution Margin: The process or theory which is used to judge the benefit given by each unit of…

Q: Relevant costs for target pricing are​ ________.   A. variable manufacturing costs   B. variable…

A: Relevant costs are the costs which are computed to take pricing decisions. These costs include the…