You need to briefly describe the “Margin of Safety”. Do companies typically want to maximize or minimize the margin of safety? Which units can MoS be shown as?

Q: Comment on the problems that may follow from a decision to increase the overhead absorption rate in…

A: Cost-plus pricing is similar to the romance story genre in that it is often mocked while yet being…

Q: Do you think distributor storage with last mile delivery is good for the automotive spare industry?…

A: The walk – linking your business with the top client through a dealer network – is important for…

Q: Some managers believe machine performance is more important in a JIT environment than in a non-JIT…

A:

Q: argin, Operating Leverage, How to accept or reject “one time only special offers”, Irrelevant costs.

A: 1. Safety Margin: Marginal safety is an amount by which the actual sales exceed the break-even…

Q: How does standard costing improves the control function? Comment with examples.

A: A standard costing framework is an accounting instrument utilized for assessing required creation…

Q: When might it be beneficial for a company to use the FIFO method? When is the weighted-average…

A: Explain the benefits of using the FIFO method and the weighted average method.

Q: *check the attached photo for the problem REQUIRED: What is the total cost per unit?

A: Gigi decided to make chicken and rice to sell, it is necessary to decide the cost per unit.

Q: one of the benefits of using standard materials is: a. reduce production time b. C. reduce noise in…

A: Some of the benefits of using standards in the business  Increases the efficiency of products…

Q: The advantages of standard costing exceeds its disadvantages. True or false? Explain further

A: Standard Costing The primary purpose of implementing the cost accounting system to any organisation…

Q: The main problem with the cost plus strategy is O incentive to show higher costs. incentives to…

A: Cost - plus pricing strategy:- A cost-plus pricing strategy, also known as a markup pricing…

Q: Explain in details what is SWOT analysis. Do SWOT (Strength, Weaknesses, Opportunities, Threats)…

A: SWOT Analysis is basically a parameter by which an organization can judge what is its Competitive…

Q: Define value engineering. How is it used to control costs?

A: Value engineering also called value analysis refers to the process of increasing quality of the…

Q: What is meant by a product’s contribution margin ratio? How is this ratio useful in planningbusiness…

A: Contribution Margin Ratio: The contribution margin ratio shows the amount of difference in the…

Q: Define margin of safety ratio. Give an example.

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

Q: Which of the following statements represents Margin of Safety (units)? O a. Expected sales (units)…

A: Solution: The margin of safety represent sales level that generates profits. Therefore margin of…

Q: The measure of how well a product meets its requirements or specifications is called: * O Quality of…

A: While providing goods and services to customers, every seller wants that the quality of the products…

Q: Identifying the relationship between the activity and the costs is a key step in which of the…

A: Scattergraph is a method of visual representation of the relationship between the cost & the…

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

Q: In make-or-buy decisions for a part for a product, relevant costs include ________. A) some…

A: Make-or-buy decisions for a part of a product: The company has many options to choose from like…

Q: What are the important points to remember in preparing the breakeven point graph? The…

A: Break-even point is the point at which company neither earns profits nor incurs loss. Break-even…

Q: Why do managers need to know the cost of their products?

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: Knowing how costs behave to change in the level of activity is useful to management for all the…

A: Customer demand cannot be predicted by paying attention to how costs change when activity changes.…

Q: explain each of Highest added value activity, to increase switching cost, and to increase entry…

A: Barriers to entry are obstacles or obstacles that make it difficult for a new business to enter a…

Q: On the basis that the main selection criterion is the product that offers the largest safety margin…

A: Product C

Q: Which of the following can be considered a risk in CVP analysis?

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

Q: How to Improve the Scalability of sustianble products with sustainable packaging and cushioning and…

A: Sustainability would be working on the principle that the current need of the people must be…

Q: The simplifying assumption that costs and volume vary in straight-line relationships makes the…

A: Cost Volume Profit Analysis is a method of costing that has an impact on the varying levels of cost…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?…

A: FIFO method is First in First out method in which inventory which is purchased first will be sold…

Q: A company wants to determine it cost of quality.

A: Answer: Cost of quality is the cost incurred by the company to maintain the quality of the cost of…

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: Which of the following is true about the hypothesis test of cost parameters? a) It indicates whether…

A: Hypothesis testing refers to the form of inferable statistics which allows us in making conclusions…

Q: Represent the cost that will be affected by the decision being considered. Margin of Safety…

A: The relevant and irrelevant costs are important in decision making.

Q: . As more warehouses are added to the system, what would we expect to happen to thefollowing?a.…

A: Warehousing : Warehouse is place where the goods that need to be sold or distributed later are need…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?

A: First-In-First-Out (FIFO) Method:   It is a method of managing inventory of an organization. Under a…

Q: Identify which of the statements below are true (T) or false (F). Lean businesses aim to: Reduce…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Which of the following is not a benefit of using RFID technology: Select one: a. Increasing labour…

A: RFID is a type of wireless transmission in which an item, animal, or human is uniquely identified…

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: Define value chain and classification of costs for “Purchase of competitor’s products for testing…

A: Value Chain:

Q: What is the difference between cost leadership and product differentiation?

A: Cost leadership is a one of the effective marketing strategies. Despite being highly effective in…

Q: Company A is currently manufacturing a component but is considering buy reliable supplier. Which of…

A: The avoidable fixed cost is the cost that does not change with the output but can be avoided in…

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.