CVP analysis
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: Which of the following is NOT true of variable costing? a. Profits may increase though sales…
A: Variable costing is a concept used in managerial and cost accounting in which the fixed…
Q: Which of the following is not a potential advantage of variable costing relative to absorption…
A: Variable costing is a method in which only variable cost is considered in product cost. Absorption…
Q: Which one of the following is not considered an assumption of cost-volun O a. Fixed cost per unit is…
A: Option E is the correct answer i.e Cost can be Divided into variable and fixed components.
Q: The conventional CVP (Cost-volume and profit) analysis has some underlying assumptions regarding…
A: Cost volume profit analysis - This analysis shows how a change in variable cost and change in fixed…
Q: Listed below are nine technical accounting terms introduced in this chapter:Variable costs Relevant…
A:
Q: Which of the following is not an assumption underlying cost-volume-profit analysis? a. The sales mix…
A: Solution: Introduction: Cost Volume Profit (CVP) Analysis describes how changes in costs, expenses…
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: Which of the following is NOT true regarding an income statement organized according to the…
A: An income statement is a financial statement that tracks both corporate revenue and expenses over a…
Q: Which of the following is not an underlying assumption of a conventional CVP analysis? Multiple…
A: Cost-volume-profit analysis is the most important tool that is used by managers to specify the cost…
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: Which of the following statements is true for a firm that uses variable costing? A. The cost of a…
A: Variable costing may be a strategy that as it were allocates variable costs to stock. This approach…
Q: statement below. The point where total sales revenue equals total cost Drag answer here Fixed…
A: The contribution margin is computed as excess of sales revenue over variable expenses. The break…
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Cost volume profit analysis is also known as CVP analysis. It shows how profits of the organisation…
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: Which of the following statements is true? a. Both variable and fixed cost change with the change in…
A: Variable cost- It is a cost which varies when the production level of the entity changes. There is a…
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: Which of the following is NOT correct about Contribution concept? Select one: a. Contribution can…
A: 1. Contribution can be computed on total basis and per unit basis 2. contribution helps in…
Q: he mathematical equation for computing required sales to obtain target net income is: Required Sales…
A: Introduction:- One of the most uses of CVP analysis is the determination of the sales required to…
Q: When comparing absorption costing with variable costing, which of the following statements is not…
A: Absorption costing is that method of costing, in which all total costs (fixed and variable) are…
Q: TRUE OR FALSE Net income under variable costing method and absorption costing method are always the…
A: If there is change in the ending inventory, net income will be different in both the methods.
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 of the following statements related to CVP chart is not true? O a. To calculate the total…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…
A: Fixed costs are those costs which do not change with change in level of activity. For example,…
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: 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: Which one of the following is not an assumption of CVP analysis? The behavior of costs and…
A: Cost Volume profit analysis is one of the means to find out how fixed costs and variable costs…
Q: How do costs behave when there is a change in volume? a) ______ increases or decreases in total in…
A: Hi student SInce there are multiple questions, we will answer only first question. Since first…
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 of the following statement is CORRECT about the foundational assumption used in CVP analysis.…
A: CVP analysis means the cost-volume profit analysis. This analysis in cost management is done to have…
Q: Which of the following cost behavior assumptions is false? * a. Variable costs are constant if…
A: Solution: Cost behavior assumptions that is false is "Total fixed costs decrease as the level of…
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: 4. Which of the following statements is correct? a. Gross margin and contribution margin are the…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Which of the following is NOT an assumption of cost-volume-profit analysis? Question 10…
A: The question is based on the concept of Cost Accounting.
Q: Which of the following statements about CVP analysis is false? O a. The CVP analysis assumes that…
A: Cost Volume Profit (CVP) analysis is only accurate if costs are kept constant within a given…
Q: Which of the following statements about CVP analysis is false? O a. Unit selling price, unit…
A: CVP analysis appearance at the impact of sales volume variations on prices and operative profit. The…
Q: Which of the following is not a potential advantage of variable costing relative absorption costing?…
A: Cost volume profit analysis is calculated by dividing the fixed cost by the unit contribution…
Q: Which of the following is true of fixed and variable costs? Volume changes will not change the…
A: Fixed cost includes expenses that remain constant irrespective of the level of outputs, like rent,…
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: TRUE OR FALSE Net income under variable costing is closely tied to changes in sales levels.
A: Fixed cost remains same under the variable costing. No matter how much units are produced, the total…
Q: To maximize profits, firms produce the level of output that: O a. equates total revenue and total…
A: The output levels achieve highest efficiency and peak profits when marginal revenue is on par or…
Q: 1. The difference between contribution margin and income from operations is ________. net income…
A: Fixed costs = Contribution margin - Income from operations Operating leverage = Contribution margin…
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: Which of the following statements is correct: A. total fixed cost remain constant while variable…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs…
A: Cost based pricing is the method to set selling price based on the cost. To get selling price,…
Q: Which of the following statements about CVP analysis is false? O a. Operating income calculations in…
A: Cost-Volume-Profit (CVP) Analysis: It is a method followed to analyze the relationship between the…
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: Write “True” if the statement is true and write “False” if the statement is false. Fixed cost is…
A: The total cost of production includes the variable costs, fixed costs and mixed costs.
Q: Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs…
A: Option b is correct.
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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 >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. O c. 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. OUS PAGE FINISH ATTEMPT ... F1 F2 F3 F4 F5 F6 F7 F8 F10 23 % & 2 3 4 7 8. V Q W T A F K 13 C V BYNI M 24 SCLEAR 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 search
- 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 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 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 one of the following is not an assumption of CVP analysis? The behavior of costs and revenues are linear within the relevant range. Sales mix remains constant. All units produced are sold. All costs are variable costs.1. 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 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 positiveA Cost-Volume-Profit graph contains an "Area of Loss" and an "Area ofProfitability". Which of the following best explains the difference between thetwo points on the graph? A. The area of loss represents the difference between Sales and Variable Cost.B. The area of loss begins with the concept that fixed costs have to be recovered priorto sales contributing to profit.C. The area of profit represents the difference between Sales and Variable Cost.D. The area of profit begins with the concept that no company would have any level ofsales below the break-even point.Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Selling price per unit does not change with volume b. Costs can be divided into variable and fixed components C. Fixed cost per unit is not constant d. Sales mix of products sold does not change O e. Costs are nonlinear