Which of the following statements about CVP analysis is false O a. Operating income calculations in CVP analysis are ba margin. O b. Unit selling price, unit variable costs, and total fixed c Oc. Managers use (CVP) analysis to study the behavior of such as total revenues, total costs, and income
Q: a) Classify each cost as either variable or fixed with respect to the number of units produced and…
A: Variable costs are those costs which varies with output. It must be noted here that variable cost…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Sales…
A: Cost volume profit analysis enables the management in determining the relation of costs and revenues…
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: CVP analysis is most important for the determination of [A] sales revenue necessary to equal fixed…
A: Cost: It refers to the economic value incurred by the company for producing a product or service.
Q: The High- low method is used for? A. Profit planning B. Splitting mixed cost into fixed cost and…
A: A mixed cost contains a fixed portion of cost incurred even when the facility is idle, and a…
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: All of the following represents a cost-volume- profit relationship except: a. Total contribution…
A: Cost profit volume analysis relationship shows how the profit of a entity changes due to change in…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a.…
A:
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: Listed below are nine technical accounting terms introduced in this chapter:Variable costs Relevant…
A:
Q: Select the correct statement concerning the cost-volume-profit graph at right: a. The point…
A: BEP: (Break-even point) It is the number of units that are sold that could result in a situation of…
Q: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…
A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost
Q: when total contribution margin equals total fixed cost this indicates operating income true false
A: First we understand contribution margin Contribution margin means Variable cost deduct from Sales…
Q: Which of the following statements about CVP analysis is true? O a. Operating income calculations in…
A: CVP is also known as Cost volume relationship which says that how much sales and profits will…
Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…
A: Cost volume profit analysis: It can be defined as the technique of accounting that is used by the…
Q: ?Which one of the following is not considered an assumption of cost-volume-profit analysis Costs can…
A: The question is multiple choice question. The question is related to Marginal Costing and is of cost…
Q: Profit volume ratio is used for the calculation of: Select one: O a. Profit at given sales O b.…
A: The profit volume ratio is also known as contribution margin ratio.
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: Product profitability is best judged through A. P/v ratio B. Gross profit ràtio C. Operating…
A: The product profitability is referred as the amount of profit which is obtained from product or…
Q: Management has at its disposal the following information: Revenue function: R =890Q ‒5.5Q2 The…
A: It is given that :- Revenue function: R =890Q ‒5.5Q2 profit-maximizing price: P=494 OMR
Q: Which of the following statements about CVP analysis is true? O a. Unit selling price, unit variable…
A: Cost volume profit analysis is the methods to identify the impact on operating income due to the…
Q: Cost-volume-profit analysis (CVP Analysis) requires management to classify all costs as either…
A: Cost volume profit analysis (CVP Analysis) helps the business entity in determining the impact on…
Q: 1. What is the controllable margin of each product? 2. What is the segment margin ofeach product? 3.…
A: The income statement can be prepared in many ways according to the determination of the net income.…
Q: In the cost-volume- profit graph (above), what is represented by the point marked "B"?
A: Break even point- This is the point where the company will make no profit and no loss, its the point…
Q: Explain the difference between the economist Cost-Volume-Profit (CVP) analysis model and the…
A: The difference in in economic cost value model and accountant cost value model is:- accountant argue…
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: Analyse the diagram and following inter related concepts of break-even analysis. A. Break-even point…
A: Break Even Analysis: It is the point where total cost is equal to revenue and It determine the…
Q: Statement 1. Selling cost is treated as expenses under variable costing. Statement 2. If sales for…
A: Variable costing and absorption costing are two methods of valuing the cost of units produced.…
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: A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Cost - volume - profit analysis It is used to determine the changes in cost and volume of sales…
Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…
A: Margin of safety ratio = Profit ratio / Contribution margin ratio
Q: On a CVP graph for a profitable company, the total revenue (sales) line will be steeper than the…
A: The graphical representation of the cost-volume benefit analysis is a cost volume profit graph, also…
Q: Which of the following is not a measure used by the financial perspective lens of the balanced…
A: A balanced business scorecard consists of four perspectives: Financial perspective customer…
Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…
A: Cost volume profit analysis - generally cost volume profit analysis is used to determine the…
Q: When using CVP Analysis, Net Profit (positive NI) would occur when Fixed Costs (FC) exceed total…
A: Net income as per CVP analysis - sales - variable cost = contribution contribution - fixed cost =…
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: Which of the following statements about determining the breakeven point is FALSE? a)…
A: The breakeven point is the level of production at which the costs of production equals the revenue…
Q: The variable cost ratio represents The proportion of variable costs in relation to net income The…
A: Solution : The variable cost ratio represents Correct answer is Option 3 . The proportion of…
Q: ?Which of the following statements about CVP analysis is true .Operating income calculations in CVP…
A: Cost - Volume Profit Analysis ( CVP ) is used to identify how the changes in cost and volumes effect…
Q: Operating profits move in the same direction as sales when variable costing is used if selling…
A: Introduction:- Variable costing varies in respective of units production Which is used for making…
Q: Which of the following is not an assumption underlying cost-volume-profit analysis?
A: Cost Volume Profit analysis- This analysis helps in understanding the cost and profit based on the…
Q: On the Cost-Volume-Profit chart graph, the area below the Total Costs Line and above the Total…
A: The cost volume analysis is used to find break even sales or desired Revenues to earn desired…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Option b is correct.
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…
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- Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. Oc. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. All of the given answers are true. LEVIOUS PAGE FINISH ATTEMPT ... Finish Esc FnLock F1 F2 F3 F4 FB F9 F10 F11 @ 23 2$ % 1 3 4 6 8. Q W E IT Y S G Y J L. C NIM 24 Alt こ0 >CLEAR MY CHOICE Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. All of the given answers are true. O c. Total revenues and total costs are linear in relation to output units. O d. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O e. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. NEXT PAC AGE ere to searchWhich of the following statements about CVP analysis is false ? a. Total revenues and total costs are linear in relation to output units . b. Managers use (CVP ) analysis to study the behavior of and relationship among the elements such as total revenues , total costs , and income c. All of the given answers are true . d. Unit selling price , unit variable costs , and total fixed costs are known and remain constant . e. Operating income calculations in CVP analysis are based on contribution margin not gross margin .
- On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented1. A profit-volume graph differs from a cost-volume-profits graph in that a profit-volume graph displays onlya. costs associated with units produced.b. operating income associated with expected sales.c. revenues and costs associated with sales volume.d. revenues expected at targeted sales levels.e. All of these are correct. 2. Fixed expenses that cannot be directly traced to individual segments are calleda. cost structure.b. direct fixed expenses.c. operating leverage.d. common fixed expenses.e. indifference point. 3. If sales remain the same and the margin of safety increases, which of the following is true?a. The break-even point has decreased.b. The common fixed costs have increased.c. The break-even point has remained constant.d. Variable costs have increased. 4. Match the type of income statement to the costs it includes.a. Variable costing income statementb. Absorption costing income statementc. Both types of income statements 1. Direct materials for units sold2.…Which of the following statements about CVP analysis is false? a. The CVP analysis assumes that total variable costs remain the same over a relevant range. O b. Total revenues and total costs are linear in relation to output units. OC. All of the given answers are true. O d. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. O e. Operating income calculations in CVP analysis are based on contribution margin not gross margin.
- Which of the following statements about CVP analysis is true? O a. Unit selling price, unit variable costs, and total fixed costs are known and remain constant . b. All of the given answers are false. O . Operating income calculations in CVP analysis are based on gross margin. O d The CVP analysis assumes that total variable costs remain the same over a relevant range .Which of the following statements about CVP analysis is true? O a. Operating income calculations in CVP analysis are based on groSs margin. O b. The CVP analysis assumes that total variable costs remain the same over a relevant range. O c. The CVP analysis assumes that variable costs per unit remain the same over a relevant range. O d. Unit selling price, unit variable costs, and unit fixed costs are known and remain constant. O e. All of the given answers are false.Which of the following is not an assumption underlying cost-volume-profit analysis?a. The sales mix is constant.b. The break-even point will be passed during the period.c. Total sales and total costs can be represented by straight lines.d. Costs can be accurately divided into fixed and variable components.
- Which of the following statements is true when making decisions using cost-volume-profit (CVP) analysis? Select one: a. As long as the contribution margin is a positive number, net income will be positive b. As long as variable costs are more than fixed costs, net income will be negative c. As long as the contribution margin is greater than fixed costs, net income will be positive d. As long as the sales price per unit is greater than fixed costs per unit, net income will be positiveWhich of the following is not an assumption underlying cost-volume-profit analysis? a.The break-even point will be passed during the period. b.Total sales and total costs can be represented by straight lines. c.Costs can be accurately divided into fixed and variable components. d.The sales mix is constant.?Which of the following statements about CVP analysis is true .Operating income calculations in CVP analysis are based on gross margin .a O „All of the given answers are false b O .Unit selling price, unit variable costs, and total fixed costs are known and remain constant c O The CVP analysis assumes that total variable costs remain the same over a relevant range d O