Why is the original cost estimate corrected based on buyout data?

Q: The focus of a sell or process further decision is Select one: a. incremental cost. O b. incremental…

A: Introduction: Incremental cost : Its an extra cost for producing the unit.

Q: During a period of steadily increasing purchase costs, whichinventory flow assumption results in the…

A: FIFO method (Firstt in First Out method) : Under this method, the inventory issues will be recorded…

Q: How are the floor and ceiling limits calculated as per the lower of cost or market (LCM) method…

A: LCM that is lower of cost or market value method says that inventory should be valued at a price…

Q: Harrison Company determines that an opportunity cost of an alternate course of action is relevant to…

A: Opportunity costs refer to the amount of left-out benefit to attain another option, which means the…

Q: Why would reclassifying period costs as product costs increase this period’s reported earnings?

A:

Q: Show the effects oncontribution margin of changesin variable costs, fixed costs,selling price, and…

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

Q: As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or…

A:

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: What is the economic rationale for the cost approach? Under what conditions would the cost approach…

A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

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: Advocates of variable costing argue that *     a. fixed production costs should be added to…

A: The fixed costs are those costs which are constant on total basis and per unit of cost decreases as…

Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: market value

A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…

Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: Why is the calculation to determine the target profit considered a variation of the break even…

A: Target Profit:   It is the desired amount of profit that a company expects to achieve by the end of…

Q: When might a reduction in operating expense as a percentage of sale denote a short term gain or the…

A: Operating expenses are those expenses which are related to the operations of the business. It…

Q: “Managers should consider only additional revenues and separable costs when making decisions about…

A: Split off point: Split-off point is the point in production process where joint products are capable…

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

A: Selling price:  Selling price is a price set by the supplier at which he is ready to sell his…

Q: State whether the following statements are true. Give reasons: Safety stock increases as demand In…

A: Inventory management is a technique which was used to manage inventories. various methods are…

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: Explain why sunk costs are not considered in the analysis ofinvestment alternatives.

A: A sunk cost is also known as the retrospective cost, is a cost that cannot be recovered because it…

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 is NOT considered in cost-volume-profit analysis?

A: Answer: opportunity costs.

Q: The target rate of return on investment the percentage used to markup the cost to an acceptable…

A: Target rate return on investment is required profit on investment made and markup the cost is…

Q: How sensitive is the NPV to changes in the quantity sold?

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: The break-even level of sales represents the point where:   fixed costs, variable costs, and…

A: Break even level of sales indicates the level where total sales are equal to total cost i.e total of…

Q: How does targeted profit enter into the break-even units equation?

A: Every organisation desires to attain certain target profit.  Therefore the organisation makes an…

Q: When comparing the lower of cost to market the appropriate market value is determined before…

A: The inventory costing approach known as the lower-of-cost-or-market (LCM) values inventory at the…

Q: Which of the following option shows the rate at which company is earning profit? Select one: a. All…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: d P/S, which company will you buy? Show computations to support your decision.

A: In the year 2020, P/E = Price/EPS for 2020 P/B =  Price/Book value per share P/S = Price/Sales per…

Q: If a company decreases its selling price for its products. The Increase? Total cost Cost plus…

A: Breakeven quantity increases with the following changes:  Increase in amount of fixed costs,…

Q: Costs that will differ between alternatives and influence the outcome of a decision ar Select one: O…

A: Relevant costs are the managerial costs that are incurred only to make specific business decisions.…

Q: In cost-volume-profit analysis, what is the estimated profit at the break-even point?

A: Cost volume profit analysis is useful to find out the different sales volume on the basis of…

Q: A cost that cannot be changed because it arises from a past decision and is irrelevant to future…

A: Definition:

Q: ases? or only in t

A: The explanation is given below ,

Q: t the contribution margin and net operating income?

A: Contribution Margin: Contribution margin refers to the contribution earned by the company from 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: What's the expected profit at break-even in a cost-volume-profit analysis

A: Introduction : The cost volume profit analysis examines the relationship between the variable and…

Q: Which of the following would not affect the breakeven point? O a. A change in variable cost per unit…

A: Break even point can be referred to as a sales level at which the firm is just able to recover all…