contribution margin ratio

Q: how does the contribution margin pricing method differ from ratio pricing method?

A: The question is based on the concept of pricing policy and methods. The product's price can be…

Q: Discuss the merits and demerits of the cost volume profit analysis (CVP)

A: Cost volume profit analysis is one of the important concept used in cost accounting. Under this…

Q: Explain the difference between total variable costs and variable costs per unit.

A: Cost can be categorized as variable and fixed costs.

Q: Discuss what the contribution margin is and how it is used.

A: Contribution margin is an excess amount of selling price of a product over the variable costs. In…

Q: Describe analyzing of profit using contribution margin.

A: The contribution margin ratio is the percentage of difference in a company's sales and variable…

Q: List the most important assumptions of cost-volume-profit analysis.

A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining that how any…

Q: Show income comparison's of absorption and variable costing?

A: Absorption costing method can be defined as the all the costs that is associated with the production…

Q: Define Contribution margin? Give three examples?

A: Contribution Margin: Contribution margin is the excess of selling price over the variable costs of a…

Q: What is the company’s contribution margin (CM) ratio?

A: Contribution margin is the amount of sales revenue left after charging variable expenses.…

Q: iable costs in the context of cost-volume-profit (CPV) analysis?  b. Fixed costs in the context of…

A: Cost volume profit analysis is very important for the companies because it tells them that whether…

Q: Contribution margin is the difference between total revenue and total variable costs. Select one: O…

A: The contribution margin is calculated by subtracting total variable costs from total revenue. The…

Q: Explain average cost method.

A: Average cost method: Under average cost method inventories are priced at the average of all…

Q: What is the difference between g Operating Margin and Net Margin?

A:

Q: Types of Fixed and Variable cost with the help of example and graph?

A: Costs are the total spent amount for the expenditures and for producing the goods and services.…

Q: Malmo, Inc. manufactures travel locks. The budgeted selling price is $12 per lock, the variable cost…

A: Flexible budget means expected income and expenditure in future to find out budgeted income.…

Q: Define efficiency ratios

A: Efficiency Ratios : These ratios are employed to evaluate the efficiency with which the firm manages…

Q: Please explain the calculation of Unit contribution

A: Unit Contribution margin is contribution margin earned per unit It is calculated in 2 ways  Unit…

Q: Define Cost recovery method

A: Cost recovery is a method in accounting wherein a business only records the revenue it earns from a…

Q: Draw up a marginal statement that calculates the contribution per uni

A: Marginal costing seems to be a costing method whereby all variable expenses are included in the…

Q: How is contribution margin calculated? What about contribution margin ratio? Aren’t they the same…

A: Subtracting the selling price per unit from the variable cost per unit yields the contribution…

Q: Relevant Range of Fixed and Variable cost with the help of example and graph

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: Merits and demerits of the cost value profit analysis CVP

A: Lets understand the basics. Cost volume profit analysis (CVP) is as name suggest analysis of total…

Q: The product cost  period cost  opertunity cost

A: Solution:- 1)Calculation of product cost as follows under:- Product cost means costs incurred to…

Q: How to calculate total prime cost

A: Meaning of Prime Cost: Prime costs are a firm's expenses directly related to the materials and labor…

Q: What is the relationship among fixed costs, contribution margin, and thebreak-even point?

A: Fixed costs: These are the costs incurred by the organization irrespective of the volume of…