Which of the following is not one of the benefits of breakeven analysis to businesses? A. Determining the lowest selling price B. Choosing the most profitable product types C. Determination of firm value D. Differentiation of fixed variable expenses E. Conducting decline in sales analysis

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: Which factors are not covered in Peters' analysis?

A: Customer growth stems from when customer-centric companies use successful customer engagement…

Q: The degree of operating leverage cannot be used to compare companies. measures how much of each…

A: Operating leverage is a financial efficiency ratio which is used to measure the effectiveness of…

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

A:

Q: Which of the following statements is true regarding a company's segment margin? It is primarily used…

A: Solution: The true statement regarding a company's segment margin is that "It is primarily used to…

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: Relative valuation has several disadvantages. Which of the following is NOT?   a. There is the…

A: In the context of the given question, we are required to find out the correct option from the…

Q: If competition causes all companies to have similar ROEs in the long run, wouldcompanies with high…

A: Companies with high Turnover will have Low-Profit Margins.

Q: The break-even point is the sales level at which a company neither earns a profit nor incurs a loss…

A: The break even sales units are calculated as fixed cost divided by contribution margin per unit.

Q: What analysis ensures that the income for the firm will cover its variable costs?    a. ratio…

A: Companies need to analyse how many products to sell or how much sales to make in a financial year to…

Q: Which of the following would lead to the breakeven point of a product shifting to the left on a…

A: Break-even analysis is done in order to find out at what point the total cost will be equal to the…

Q: Break-even analysis is concerned with determining a point at which the company can minimize total…

A: Break-even point is the point reached by the company where the revenues and costs of the firm are in…

Q: Help question 28

A: Operating leverage: It is a financial ratio that measures a company’s operating income to its sales…

Q: Break-Even Point AnalysisThe break-even point is usually expressed as the amount of revenue that…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: Which of the following statements is true? A In linear break-even analysis, the contribution margin…

A: As per the linear break-even model, the contribution margin per unit is the difference between the…

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: In what ways might using ROI as a performance indicator for investment centers lead to poor…

A: ROI: It measures the amount of return on a specific investment to the cost of the investment. The…

Q: What other issues must the company consider in deciding whether to accept the business?

A:

Q: true or false The smaller the contribution margin ratio, the larger the amount of sales required to…

A: Contribution margin ratio: The contribution margin represents the incremental cash generated for…

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: Lowering price does not always increase revenue with increased demand. Besides reducing price, what…

A: Reducing prices will not always stimulate demand to the desired extent especially in case of…

Q: If company A has a higher degree of operating leverage than company B, then: Multiple Choice…

A: SOLUTION- Higher fixed costs lead to higher degrees of operating leverage; a higher degree of…

Q: If company A has a higher degree of operating leverage than company B, then: company A is more…

A: OPERATING LEVERAGE IS THE DEGREE TO WHICH A FIRM OR PROJECT CAN INCREASE INCOME BY INCREASING…

Q: Which of the followings is/are drawbacks associated with valuation by comparables with P/S or P/E?…

A: If the the earnings are negetive, then value would also be negetive, which is not possible.  If…

Q: operating leverage factor t

A: Operating leverage factor = (Sales - Variable costs)/(Sales - Variable costs) - Fixed costs

Q: which:     successful strategies will not be reflected in accounting profits for a number of…

A: There are activities whose usefulness or potential cannot be measured in terms of money and they…

Q: How may using ROI as a success indicator for investment centers lead to poor decisions? How does the…

A: ROI: It calculates the amount of return on a particular investment about the investment's cost. The…

Q: The break-even point in a given situation would be decreased by an increase in a. the CM ratio. b.…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Which of the following statements about operating leverage is false? O a. If the degree of operating…

A: Operating Leverage = %change in EBIT / % change in sales

Q: One drawback to the weighted average method is that you might end up selling products at a loss True…

A: Weighted Average Method is a method of valuing the cost at an average value instead of their real or…

Q: Which of the following statements about operating leverage is false? O a. All of the given answers…

A: Degree of operating leverage means the division of contribution with net income. It means that how…

Q: Which of the following is not a feature of full cost plus sales pricing related to a range of a…

A: Following is the answer to the given question

Q: osts and long-run average costs? Explain the association between return to scale and economies of…

A: Economies of scale: This term refers to the cost advantage that a firm will gain as a result of a…

Q: CVP analysis indicates that your start-up will break even with the current sales mix and price…

A: CVP stands for Cost Volume profit analysis is the one which is used for determining how the changes…

Q: What are the advantages/disadvantages of using the market multiples method to estimate the value of…

A: It is a valuation strategy that decides the distinctive market values for similar organizations.…

Q: comparative income approach,

A: Particulars If continued (Amount in RM) If dropped (Amount in RM) Sales 60000   Variable…

Q: Under which of the following conditions could the overuse of financial leverage be detrimental to…

A: Financial leverage is more use of debt which continous payment of interest rather than issues of…

Q: When performing sales mix analysis, which one of the following is false: O a. Normally the…

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

Q: Do you agree or disagree with this statement? why?

A: Given statement is: Since break-even analysis focuses on making zero profit, it is of no value in…

Q: In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do…

A: Break-even point: It is that point in the business when all its costs have been recovered.…

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: 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…

Q: Which of the following is not an assumption of break-even analysis? a. A company is operating within…

A: Break-Even Point:  It is the point of sales at which entity neither earns a profit nor suffers a…