Which of the following is NOT an assumption of cost-volume-profit analysis?   Question 10 options:   Inventory levels will change as production levels vary.   Managers can classify each cost as either variable or fixed, and mixed costs can be broken down into their variable or fixed component.   Revenues are linear throughout the relevant range of volume.   The sales mix remains constant.

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 sets of inventory cost flow assumptions is not susceptible to profit…

A: FIFO and average cost methods are considered as the sets of inventory cost flow assumptions that are…

Q: A growing firm is contemplating switching from a FIFO to a LIFO cost flow assumption forinventories…

A: In case of rising prices, when the LIFO is applied the cost of goods sold will increase (as the…

Q: It’s common in the electronics industry for unit costs of raw materials inventories to decline over…

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…

Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…

A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…

Q: How might a company simplify its use of the NRV method when final selling prices can vary sizably in…

A: Net Realizable Value (NRV) Method: NRV method is a method of joint cost allocation which takes into…

Q: When inventories are decreasing, _________ costing will lead to lower profits because…

A: When inventories are decreasing, absorption costing will lead to lower profits because capitalized…

Q: ending inventory increases therefore net income under AC and VC will be same Select one: True False

A: The income statement can be prepared using various approaches as contribution margin or absorption…

Q: On the cost-volume-profit graph, which of the following would result into an increase in the…

A: Answer

Q: Under variable costing, which of the following costs are assigned to inventory?  Variable Selling &…

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

Q: CVP analysis with multiple products assumes that sales will continue at the same mix of products,…

A: When there are multiple products, there is change in the product mix then the weighted average is…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment measures the net earned on the assets employed by the business.

Q: During a period of rising inventory costs and stable output prices, describe how net income and…

A: First in first out Method (FIFO) First in first out method is one of the popular method which was…

Q: Which one of the following variables is not explicitly considered in the computation of the Economic…

A: Economic Order Quantity is entity's optimal order quantity to minimize total costs retated to…

Q: “Managers should always buy inventory in quantities that result in the lowest purchase cost per…

A: Inventory:  Inventory refers to the raw materials, work-in process, and the finished goods products…

Q: If costs are rising, which of the following will be true?a. The cost of goods sold will be greater…

A:

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: Variable selling expenses are a. Product costs under variable costing but period costs under…

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

Q: The fundamental EOQ model a. provides for fluctuating lead times during reorder cycles. b. is…

A: EOQ (Economic order quantity): A decision much out the great inventory management. the quantity to…

Q: If a company has three lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle)…

A: Deflationary cost pattern means where prices are falling continuosly.

Q: CVP analysis makes all of the following assumptions except     a change in volume is the only…

A: In order for a CVP analysis to be accurate, certain assumptions must be met. These assumptions are:…

Q: Cost-volume-profit analysis is used for ________. analyzing the effects of changes in costs on…

A: Cost volume profit analysis is designed for profit forecasting at varying levels of sale volume and…

Q: Under generally accepted accounting principles, a company can choose among different cost flow…

A: Consistency principle: The consistency rule expresses that, when you embrace a bookkeeping rule or…

Q: b order to attract investors and borrow on attractive terms, a company would use in times when…

A: When the cost of inventory is raising, the cost of holding old stock will get higher.  The inventory…

Q: variable costing

A: Option a is wrong because even if there is no change in the fixed costs in the beginning and ending…

Q: Which of the following performance measures will increase if inventory decreases and all else…

A: Return on investment is a simple ratio of the gain from an investment relative to the amount…

Q: 1.  Which of the following assumptions is false in a cost-volume-profit analysis? Total sales and…

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

Q: Determine which one of the following statements is correct: O a. Achange in the sales mix will…

A: The breakeven point is the point where a company does not have any profit and loss from their sales,…

Q: In comparing the absorption and variable cost methods, each of the following statements is true…

A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: What factors might impact on the management’s selection of an inventory cost flow assumption? In…

A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

Q: Help question 30

A: The contribution margin ratio shows the percentage of each dollar sales that is available for…

Q: Which cost flow assumption generally results in the highest reported amount of net income in periods…

A: Solution: Under FIFO method, inventory is valued at latest purchase cost. Therefore in period of…

Q: Gross profit variance analysis can be used to study the effect of:  a. Changes in volume of goods…

A: Gross profit variance analysis is referred as the measurement tool used to measure the capability of…

Q: A firm that uses LIFO accounting for inventory in times of rising investory costs will always report…

A: FIFO First in first out method is a method of inventory accounting wherein the units of goods…

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: Match each of the following descriptions with the appropriate term.   Clear All Plots only the…

A: Given, Match each of the following descriptions with the appropriate term.

Q: Th e Industry and Business Risk excerpt states that, “Increased competition may lead tolower unit…

A: If prices are decreased, write downs under FIFO are least probably to have a considerable impact as…