Which method results in a more realistic amount for income because it matches the most current costs against revenue

Q: Choose the best answer for each of the following multiple-choice questions.1. Cost-volume-profit…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Compare and contrast the differences and similarities between Cost of Goods Sold and Net Profit.

A: Cost of goods sold (COGS) represents the direct cost of producing the goods. These are the direct…

Q: QUESTION 2 (a) Explain the following terms: () margin of safety (i) contribution margin (ii) (b)…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: When Total Contribution magrin equals total fixed costs, this indicates operating income True…

A: If the contribution margin is equal to the total fixed cost that means it a situation of the…

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Which of the following does not represent a cost-volume-profit analysis equation? a. Contribution…

A: Your choice is incorrect because option b. Is represent a cost volume profit analysis equation. The…

Q: Gross profit is disclosed on an income statement prepared using O a) Variable costing. O b)…

A: Gross profit is disclosed on an income statement prepared using Direct Costing method.... Option C…

Q: Describe the difference between the units sold approach to cvp analysis and the sales revenue…

A: Sales can be defined as the source of earning to the business entity out of the sale of inventory…

Q: 4. (A) Which of the following transactions would cause net income for the period to be understated…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Explain the concepts of revenue, costs, break-even and profit with examples?

A: These concepts are related to variable costing in which we use variable cost to compute our…

Q: Which of the following is not a correct definition of the breakeven point? A.the point where total…

A: At Breakeven Point, Total Profits are equal to zero, Contribution Margin equal to Total Fixed…

Q: d. Explain why there is or is not a difference in the net income amounts in the two income…

A: Absorption costing and variable costing are two costing methods under which the major difference…

Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Sales - fixed…

A: Cost-volume-profit   equation: Profit = Revenue – Fixed Costs – Variable Costs

Q: Why is the constant gross-margin percentage NRV method sometimes called a “joint-cost allocation and…

A: Constant gross-margin percentage NRV method: Constant gross margin percentage NRV method is a method…

Q: Which of the following statement is correct for relevant costs? a. It is avoidable, future and…

A: Relevant cost are those costs which are relevant for decision making. A cost is judged to be…

Q: Which of the following is the disadvantage of using FIFO method. a. The assumed flow of costs…

A: Lets understand the FIFO method and their advantages and disadvantages. As the name suggest, First…

Q: Which of the following is the correct calculation of selling price? O a. Cost + Mark-up O b.…

A: Selling price is price at which goods and services are sold to customer. This selling price includes…

Q: 1) Cost-volume relationship states that maximum profit is reached by maximizing revenue. Select one:

A: the correct option with adequate explanation are as follows

Q: What type of cost is included in economic costs, but not included in accounting costs?a. Explicit…

A: Economic costs are the costs in which consideration is given to opportunity costs as well.

Q: How you relate the differential cost with management of revenue in management accounting.

A: Management Accounting is a type of accounting which is used within the company for the purpose of…

Q: Which is the true statement?   The CVP income statement shows contribution margin instead of gross…

A: The CVP Income Statement or the Cost- Volume- Profit Income Statement is almost similar to the…

Q: The difference between sales and marginal cost is______________ a. Fixed Cost b. Profit c. Sales…

A: Introduction: Sales price: The price for which the goods are sold called as sales price. Total sales…

Q: current cost financial statements: a. General price level gains or losses are recognized b. Amounts…

A: Explanation: The financial accountiing term current cost accountiing refers to an approach that…

Q: he distinction between indirect and direct costs depends on: Select one: a. whether a cost differs…

A: Direct cost means the cost which can be related with the production of specific goods directly like…

Q: 1. The amount by which an item contributes towards covering fixed cost and providing for profit is…

A:

Q: c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.…

A: Note 1: Under FIFO  it is presumed sales are made from the earlier unit and under LIFO , it is from…

Q: 1. Prepare an income statement using the a. Net realizable value method b. Reversal cost method

A: Net realizable value refers to the value which is realized upon the sale of assets minus cost…

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 the cost-volume- profit graph (above), what is represented by the point marked "A"?…

A: Introduction Cost volume profit (CVP)  In CVP analysis if cost is equal to the sales then there is…

Q: Complete the sentence: In a modified B/C (Benefit/Cost) Ratio... Select one: o a.disbenefits are put…

A: Answer: The correct option is option (c). The M&O costs are put in the numerator.

Q: What is meant by incremental revenue or incremental cos

A: Incremental Revenue Incremental Revenue means is an additional revenue earned from selling one…

Q: et cost = Selling price - ______________. a. Cost b. Profit margin c. Revenue d. Expenses

A: Solution: Target cost = Selling price - profit margin. This is because target cost is the estimated…

Q: Which of the following does not represent a cost-volume-profit analysis equation? O a. Contribution…

A: Contribution = Sales - Variable expenses Profit = Contribution - fixed expenses

Q: Question 2: It is usually seems as cost accounting cover the financial accounting problems as:…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Compute the gross margin ratio and explain its use to assess profitability.

A: Gross margin ratio is the measure of profitability of the business and it depicts a ratio between…

Q: To make predictions about costs and income, you must first classify costs by their behavior.…

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: When applying lower of cost or net realizable value under the FIFO, average cost, or specific…

A: The lower of cost or net realizable value method says we should record the inventory at market price…

Q: ases? or only in t

A: The explanation is given below ,

Q: Which of the following does not represent a cost -volume -profit analysis equation a. Sales = totale…

A: lets assume , Sales = 1000 less Variable cost = 200 Contribution = 800 less - Fixed cost = 100…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.