Describe the approaches to estimate stand-alone selling prices.

Q: Cost accounting is used as a means of fixing a selling price. Select one: True False

A: Cost accounting is a method of managerial accounting which is used to calculate the total production…

Q: What assumption is usually made concerning sales mix inCVP analysis?

A: Sales mix: A proportion of two or more products sold by the company to maximize the profit, that…

Q: Income statement format that separates cost of goods sold into categories? Select one: a. Detailed…

A: The multiple-step income statement shows the cost in a separation method. So that we can easily…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: Which of the following variations of the reail inventory method would generally result in the lowest…

A: FIFO is a method used to value inventories. In First-In-First-Out (FIFO) method the cost of the…

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: Under what circumstances is relative sales value anappropriate basis for determining the price…

A: Relative sales value is an appropriate basis for pricing inventory when a group of changing units is…

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order…

A: EOQ: Economic Order Quantity is basically the optimal quantity of number of orders which in turn…

Q: How is standalone selling price defined?

A: Performance Obligation: Performance obligation refers to the obligation that the seller to provide…

Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…

A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…

Q: What are three methods for estimating stand-alone selling prices of goods and services that normally…

A: The stand-alone selling price refers to the price at which an entity will sell the goods and…

Q: Explain percent of sales method.

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Discuss the effect of absorption and marginal costing on inventory valuation and profit…

A: Absorption costing also written as full costing. Under this method, all costs are considered in…

Q: For commercial reasons, a weighted average and inventory system from lifo fifo should be considered.

A: The LIFO (Last in, first-out) The LIFO accounting method is used to value inventory. This method is…

Q: Distinguish between the sales values at splitoff method and the NRV method.

A: Sales value at split-off method: Sales value at split-off method allocates joint cost to each joint…

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: ith inflation, what are the implications of using LIFO and FIFO inventory methods? How do they…

A: FIFO: First in, first out (FIFO) is a method of asset management and valuation in which assets…

Q: Explain the Sales Comparison Approach?

A: Sales comparison approach is comparative market analysis that compares a property to other…

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: DIRECTION: COMPLETE THE FOLLOWING TABLE SELLING PRICE , COST, MARKUP, MARK-UP BASED ON SELLING…

A: Mark up refers to the difference between the selling price and cost price of the goods and services…

Q: Which of the following is the correct calculation of rate of mark-up on selling price? a.…

A: Rate of Markup on Selling Price:-Sales price minus the unit cost that divides that number of unit…

Q: Discuss the concepts of over- and understoring and describe their relationship to the Index of…

A: The Index of Retail Saturation (IRS) is the ratio of available supply to demand for a product…

Q: How do we calculate cost of sales

A: The net sales are calculated as difference between sales and sales discounts.

Q: Distinguish between the sales value at splitoff method and the NRV method

A: Sales value at split-off method: Sales value at split-off method allocates joint cost to each joint…

Q: What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP…

A: Sales mix of a product is the proportion of a product sales in overall sales of the company. A…

Q: How can a company track the extent of price discounting on a customer-by-customer basis?

A: Customer Profitability Analysis:Customer profitability analysis is the process of ascertaining the…

Q: how is the selling price computed

A: Formula: Selling price=Cost100%-Gross profit ratio

Q: Explain how negotiation between the supplying and buying units may be used to set transfer prices.…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: What is the formulae used to find markup price?

A: Markup price is the price that the player comes up with after adding the mark up to the cost price…

Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…

Q: Explain the term sales value at splitoff method.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Explain how the retail inventory method can be made to approximate the lower of cost or market rule.

A: Retail inventory method:   It takes into account. all the retail amounts that is, the current…

Q: Retailers often use psychological pricing as a price-adjustment strategy. Explain this pricing…

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Describe Estimating Supplier Costs Using Reverse Price Analysis?

A: Reverse pricing analysis is a pricing model which allows its consumers in order to establish the…

Q: Explain the difference between the retail inventory method using LIFO and the dollar-value LIFO…

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…