Which of the following underlying assumptions form(s) the basis for cost-volume-profit analysis? All of the choices are assumptions that underlie cost-volume-profit analysis. In multiproduct organizations, the sales mix remains constant. Worker efficiency and productivity remain constant. Revenues and costs behave in a linear manner.

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 of the following is not a true statement about variable costs? O a. Total cost is known to…

A: Variable Cost Variable cost which is described as the cost which are incurred to the business entity…

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

A:

Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…

A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…

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: CVP analysis

A: Option "b" is wrong because the statement is true. The purpose of CVP analysis is to study 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: Understanding the relationships in the expanded contribution margin model may be the singlemost…

A: Step 1   Cost Profit volume analysis is the basic evaluation and seeing the impact of the cost and…

Q: In a multi-product company, Proportion of product sales to total sales at BEP will be equal to…

A: SOLUTION- MULTI PRODUCT COMPANY- IT WORKS BEST WHEN A CUSTOMER FOR ONE PRODUCT IS LIKELY TO BE…

Q: The dollar amount of sales needed to achieve a target operating income is computed by…

A: The contribution margin is calculated as excess of sales revenue over variable expenses.

Q: The three most common cost behavior classifications are a. variable costs, product costs, and sunk…

A: Cost volume profit analysis includes various techniques that help in the decision-making of the…

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: Explain the concept of a contribution margin and describe how it differs from gross margin. Also,…

A: Contribution Margin represents the incremental money generated for each product/unit sold after…

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 NOT correct about Contribution concept? Select one: a. Contribution can…

A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Profit per unit = $ 4 Quantity = 11,700  Units   Therefore        Gross profit = Profit per…

Q: Explain the difference between the economist Cost-Volume-Profit (CVP) analysis model and the…

A: The difference in in economic cost value model and accountant cost value model is:- accountant argue…

Q: cost leadership and differenti

A: Strategy refers to the work at the business where a person should focus on his efforts to achieve…

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 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: 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: Is there a point in a cost-volume-profit analysis when the company is expected to profit?

A: Is there a point in a cost-volume-profit analysis when the company is expected to profit? Answer:…

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. Unit selling price, unit…

A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…

Q: What concept relates to the proportionate savings in costs gained when levels of production are…

A: Lets understand the meaning of all the terms given in the question. Accounting profit is a terms…

Q: In a cost-volume-profit (CVP) graph, the intersection of the total sales line and the total expense…

A: The intersection of total sales line and total expense line means, Total sales = Total expense

Q: To maximize profits, firms produce the level of output that: O a. equates total revenue and total…

A: The output levels achieve highest efficiency and peak profits when marginal revenue is on par or…

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: Under the Towne profit sharing plan O standards are fixed for labour costs and actual cost compared…

A: Towne Profit Sharing Plan Main motive of gain or profit sharing of a company is to seek higher level…

Q: What profit-based pricing approach should a manager use if he or she wants to reflect the percentage…

A: Profit grounded pricing strategy is the approach which involves setting the prices for the product…

Q: Companies benefit greatly from the use of a standard cost system, and the statement

A: This question deals with  the use of a standard cost system, and the statemen

Q: The variable cost ratio represents  The proportion of variable costs in relation to net income The…

A: Solution : The variable cost ratio represents  Correct answer is Option 3 . The proportion of…

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

A: CVP analysis estimates the how much the changes in a company's cost, both fixed and variable, sales…

Q: What factors affecting ROI does the DuPont method of profitability analysis highlight?

A: DuPont method of Profitability Analysis: According to DuPont method of Profitability Analysis,…

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: Describe the differences in behavior of fixed costs, variable costs, semi-variable costs and step…

A: Fixed costs are fixed in nature, it doesn't vary with the change in units. The total fixed cost will…

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 statements about CVP analysis is false O a. Operating income calculations in…

A: Cost volume profit analysis is the analysis in which the relationship between cost, volume and…

Q: The component that analyzes profitability is • , and its value is The component that analyses…

A: DuPont Analysis has been developed by the DuPont Corporation for decomposing different aspects of…

Q: An analyst is constructing a simple model to determine the gross and net profit of a product, given…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as net…

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…

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

A: Option b is correct.